JPY experienced sideways movement in the European session. USD/JPY drifted close to the 118.00 area for a large part of a quiet session. EUR/JPY consolidated around 151.25 after struggling to recapture yesterday's 151.68 high. JPY retains a mild heavy tone, with the background influence still coming from investor interest for yield and carry trade activity.
Traders are expecting quieter trading conditions to continue in the near-term, with Thanksgiving holidays in Japan and the US on Thursday. USD/JPY is capped by offers from 118.25 reportedly from option players and exporters. Large size 118.00 strikes are drawing significance in quiet trade, with gamma related flow picking up over the last 24 hours. Stops will come into play if spot moves through the 117.90 Asian low or manages to press through 118.25 offers. EUR/JPY is supported by proprietary name activity ahead of the 151.10 10-day moving average.
JPY funded trades also provide support but the topside is suffering from options supply amid good size 151.50 and 151.75 strikes. Offers are tipped from 151.70/75 from exporters and model funds.
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