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USD/JPY breaks below 118.00, 200-hourly MA


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FXStreet (Bali) – USD/JPY has lost the 118.00 handle following strong Yen demand post-Tokyo fix, and as the Nikkei 225 gives back a fair portion of its daily gains, currently up +0.55%.

There is some optionality interest, with expires at 117.75/118.00 worth over USD850m likely to see offers initially well absorbed by these-option-related bids, with the area also representing the origin of Thursday’s spike in the overlap of NY-London.


Looking at the downside, Jim Langlands, Founder at FXCharts, notes: “The downside will again find bids at 118.00, where the 100/200 HMA’s will provide the initial support, below this could then head to the rising trend base, now at 117.45 and then at the recent lows at around 117.30.” Based on the daily picture, further range trade is likely.