The USD/JPY is at a high level, and the JPY cross market has seen greater gains
The USD/JPY is at a high level but still below 160, with a greater increase in the JPY cross market;
① The USD/JPY is at a high level in Asian trading, currently trading around 159.79, with resistance levels still above 160.00.
② Speculators are interested in stop loss orders above 160.00, but there are Japanese exporters and option related sales.
③ A large number of options expired at 160.00 this week, with a total of 628 million US dollars today. On Thursday, there was $901 million, and on Friday, there was $2.1 billion - which will help curb foreign exchange.
④ However, there were also a large number of options expiring below Wednesday, with a total of $2.7 billion around 159.00, providing support for the exchange rate. However, the yield on US Treasury bonds has weakened and does not support the exchange rate. The two-year yield on US Treasury bonds is 4.718%, and the 10-year yield is 4.263%.
⑤ Traders expect the intervention threat to decrease today, but if it breaks through 160.00, there will be fluctuations.
⑥ There is a large stop loss order above 160.00, which may cause a significant increase in the USD/JPY. Consider the possibility of the Bank of Japan raising interest rates in July, but the probability is still relatively low.
⑦ Tokyo's risk appetite has increased, with the Nikkei Index rising 1.4% to 39726 points, the highest level in two months.
⑧ Some yen crosses even saw greater gains than the US dollar/yen, with strong arbitrage demand. The Australian dollar/yen was at 105.92-106.76, the highest point since July November 2007
Tips：This page came from Internet, which is not standing for FXCUE opinions of this website.
Statement：Contact us if the content violates the law or your rights