Trade Idea: Buy USD/JPY on dips to 98.90; target 1.0140; stoploss 98.40.
USD/JPY continues to attract strong buying interests on dips amid recent reports out of Tokyo that Japanese institutional investors are beginning to shift a greater percentage of their portfolios overseas in search of higher yields than those offered in the domestic market.
There is a special upside catalyst this week in the expiration of many large exotic option structures struck at the 100.00 this coming Thursday. Market makers will be keen to push prices through 100 to extinguish the risk from the barrier options from their books and avoid large DNT payouts. We also have “the rule of threes” working to our advantage in this case. Markets often take three bites at the apple before breaking major support or resistance levels. USD/JPY has stalled twice just shy of 100. Our bet is that third time will be the charm.
Our target is just a few pips shy of the 1.0145 high set back in April of 2009...continue
USD/JPY continues to attract strong buying interests on dips amid recent reports out of Tokyo that Japanese institutional investors are beginning to shift a greater percentage of their portfolios overseas in search of higher yields than those offered in the domestic market.
There is a special upside catalyst this week in the expiration of many large exotic option structures struck at the 100.00 this coming Thursday. Market makers will be keen to push prices through 100 to extinguish the risk from the barrier options from their books and avoid large DNT payouts. We also have “the rule of threes” working to our advantage in this case. Markets often take three bites at the apple before breaking major support or resistance levels. USD/JPY has stalled twice just shy of 100. Our bet is that third time will be the charm.
Our target is just a few pips shy of the 1.0145 high set back in April of 2009...continue