Both USD/JPY and EUR/JPY traded on a supportive footing, yet movement on the upside was thwarted by a vigorous defense of option barriers. USD/JPY pressed higher early on in the European session but was unable to overcome good size 119.80 option barriers. Exporters, option accounts and semi-official names were noted on the offer. This fueled consolidated back into 119.40/45, where bidding was noted from a German name and a European fund.
USD/JPY drifted around the mid 119's for the remainder of the session, in part due to a lack of momentum and decent size 119.50 option strikes. EUR/JPY was choppy around 150.00. Selling from exporters and proprietary names capped, while the ownside was underpinned into 149.80. Option strikes at 150.00 also influenced, with price action limited for large part of the session. Near-term focus remains on USD/JPY 120.00 barriers. Sizeable offers are noted from 119.80 up to 120.00, with amounts reportedly in USD 3 billion. Both pairs appear to be struggling from waning momentum, with prices overstretched on USD/JPY and EUR/JPY struggling to press higher. Risk remains on the downside.
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