A generally firmer Dollar through the early European session, the USD index continues to flirt with levels above 82.00, but a more subdued level of action for USD/JPY. The market, which has been fairly active this week despite the Golden Week holidays, looks to have blown itself out. A brief flurry of activity between 120.21 and 120.40 cleared away some stale overnight short plays but the bounce to the highs failed to hold and we are now witnessing price consolidation at 120.35.
Thursday's positive U.S data releases have given the market cause to be optimistic heading into today's payroll numbers. USD/JPY recorded a two-month high of 120.47 last session and is now consolidating these gains. Option plays are still a feature of this market and we have 120.50 barriers and associated offers along with 120.00 and 120.25 strikes that are rolling off today.
Technically the Dollar is looking a tad top heavy above 120.00 but there is
room for corrective action back to the figure without damaging the underlying trend.
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