JPY consolidated at softer levels in the European morning. USD/JPY reversed the overnight losses recovering the 116.00 handle and extending to 116.30. Further JPY selling was noted by institutional investors and leverage accounts. Stops were filled at 116.10 and 116.30. Follow was lacking though amid ongoing option related selling linked to large size 116.00 strikes.
EUR/JPY pressed higher, moving off the 152.70/75 European opening levels. The pair briefly found levels above 153.00 but was unable to sustain these levels and spent a large part of the session hovering just below 153.00. Japanese lifers and option related offers were reportedly behind the price congestion above the 153.00 handle. Market attention has shifted towards the Fed Beige Book due to be released at 19:00GMT.
Data releases include the 2nd estimate for Q3 GDP and New home sales. The dollar has regained some poise largely due to exhausted dollar sellers. Many are still calling for a softer dollar into the year-end but are now looking for fresh impetus to fuel momentum.
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