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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

USD/JPY

Overview:
    Today Last Price: 108.69
    Today Daily change: 49 pips
    Today Daily change %: 0.453%
    Today Daily Open: 108.2
Trends:
    Previous Daily SMA20: 109.8
    Previous Daily SMA50: 111.9
    Previous Daily SMA100: 112.14
    Previous Daily SMA200: 111.15
Levels:
    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

 

 

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