USD/JPY hit a fresh session high of 108.75, JPY call bias weakest in four weeks
- RIsk-on powers USD/JPY to session highs above 108.70.
- The demand for JPY calls (bullish bets) has hit a one-month low.
The USD/JPY pair is tracking the risk assets higher.
The currency pair hit a session high of 108.75 a few minutes before press time, having picked up a bid at 108.12 in early Asia.
The 63 pip rise is likely a result of improved risk appetite and the resulting drop in demand for the anti-risk JPY. Major Asian equity indices like Nikkei, Kospi, Hang Seng, and Shanghai Composite added at least 0.5 percent each. Further, the S&P 500 futures also gained 0.5 percent.
More importantly, the risk-on seems to have reached the European shores. At press time, the Euro Stoxx 50 futures are reporting a 0.80 percent rise. Therefore, USD/JPY could extend gains in Europe.
Validating that bullish case is the one-month 25 delta USD/JPY risk reversals gauge, currently trading at -1.525, the highest level since Dec. 19.
Indeed, the negative number indicates JPY call or USD/JPY put bias. The gauge, however, has witnessed a near 90-degree rally from the low of -2.275 seen on Jan. 3.
Put simply, the demand for USD/JPY puts (JPY calls) has dropped in the last few days.
A put option gives the buyer, the right, but not the obligation, to sell an underlying asset at a specified price within a specified time frame.
Meanwhile, a call option gives the buy, the right, but not the obligation, to buy an underlying asset at a predetermined price within a specified time frame.
USD/JPY Technical Levels
Today Last Price: 108.69
Today Daily change: 49 pips
Today Daily change %: 0.453%
Today Daily Open: 108.2
Previous Daily SMA20: 109.8
Previous Daily SMA50: 111.9
Previous Daily SMA100: 112.14
Previous Daily SMA200: 111.15
Previous Daily High: 108.56
Previous Daily Low: 107.99
Previous Weekly High: 109.09
Previous Weekly Low: 107.77
Previous Monthly High: 113.83
Previous Monthly Low: 109.55
Previous Daily Fibonacci 38.2%: 108.21
Previous Daily Fibonacci 61.8%: 108.34
Previous Daily Pivot Point S1: 107.94
Previous Daily Pivot Point S2: 107.67
Previous Daily Pivot Point S3: 107.36
Previous Daily Pivot Point R1: 108.52
Previous Daily Pivot Point R2: 108.83
Previous Daily Pivot Point R3: 109.09