More strong data is prompting the market to curb their enthusiasm regarding the size of QE
This is helping goose the USD higher across the board, but especially the interest rate sensitive USD/JPY. Traders report strong interest from investors to buy topside protection in USD/JPY with 1-week 82.00 and 83.00 USD calls trading heavily.
So far, 81.50 offers are containing the rally but stops lie in the 81.60 area.That level was the spike high on Monday morning after the intervention/”fat finger” rally.
On dips, trendline support comes in at 81.31 and the 21-day moving average is at 81.43.