Narrow European ranges persist in EUR/JPY, with the pair hovering at levels close to the 150.00 handle. Regional geopolitical risk continues to provide a supportive backdrop, with JPY undermined amid fears of further nuclear tests by North Korea. Pullbacks in EUR/JPY have been shallow as a consequence, with the pair limited to the 149.50-70 region on any downturn. Equally, movement on the topside continues to struggle amid heavy supply from the 150.30 area. Exporters, real money accounts and leverage names have reportedly left an array of offers.
This interest is layered back into 150.50, where decent size option positions are noted. The supply on EUR/JPY has picked markedly over the last couple of weeks due to an increase in official rhetoric on EUR/JPY strength. This theme is expected to hamper EUR/JPY's topside despite the bullish underlying trend. Note, daily trend studies are also close to overbought levels, which could fuel further corrective price action here.
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