FX Update- USD/JPY
USD/JPY is expected to run in to good offers ahead of 110.00 amid reports of large size option triggers from 109.90 up to 110.20. Exporter have parked offers ahead of 109.90 as they try to capitalize on the higher levels. Also of note, is USD/JPY’s seasonal tendency to fall in August. Market watchers cite USD/JPY falling in 9 out of the past 10 August’s by an average of 2.2%, which may also encourage profit taking around the 110.00 handle. Option trigger levels are at 109.90, 109.95, 110.00, 110.10 and 110.20.