BoA:
The USDJPY market seems to be eagerly anticipating the rolling off of 103.50 barriers, which we expect to occur over the coming days. However, a large concentration of strikes in the 102-104 region over the next days may prevent a substantial breakout in the short term. The vast majority of requests remain for USDJPY upside and that post NFPs that is definitely the case. The APAC FX Options desk favours vega-neutral strategies when positioning for USDJPY, at least until we are through the December FOMC. APAC Spot trading look to add to USDJPY longs around 103.00/10, reducing on a break of 102.50, with 103.74 the 2013 highs the target after 103.50. MacNeil Curry, Chief Technical Strategist, looks for a move to 104.60/105.00 by year end and reiterates his bullish Nikkei, USDJPY view for 2014 in his outlook.
The USDJPY market seems to be eagerly anticipating the rolling off of 103.50 barriers, which we expect to occur over the coming days. However, a large concentration of strikes in the 102-104 region over the next days may prevent a substantial breakout in the short term. The vast majority of requests remain for USDJPY upside and that post NFPs that is definitely the case. The APAC FX Options desk favours vega-neutral strategies when positioning for USDJPY, at least until we are through the December FOMC. APAC Spot trading look to add to USDJPY longs around 103.00/10, reducing on a break of 102.50, with 103.74 the 2013 highs the target after 103.50. MacNeil Curry, Chief Technical Strategist, looks for a move to 104.60/105.00 by year end and reiterates his bullish Nikkei, USDJPY view for 2014 in his outlook.
