Into the US data and the NY options cut the 118.55 expiries helped cap USD/JPY. In the wake of the lower than expected Michigan data and the price has once again eased and trading is back around the 118.20/30 area as spot is pulled & pushed by both the Yen and Dollar weakness.
Elsewhere, dealers note that the best buying of EUR/JPY came out of a UK Clearer (no bias but yes the source was a London dealer). Yen weakness continues to drive the crosses and stops in EUR/JPY have been removed in the break above the 151.00 options all the way back to the 151.50 level. The cross is currently tangling with a clean break above this level and should option structures into this level be erased then a run at the 152.00 option will be looked for.
Against the Pound the JPY is still be used a funding tool and stops were removed here in the earlier break above 225.00. Historic highs at 225.32 printed but in the wake of the MPC some long-GBP positions have been cut to help stall further
strength here.
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