USDJPY is finding demand into 120.00 on option related support
Before I sign off I just wanted to bring you this snippet that I've been hearing about
Talk of DNT (Double No Touch ) barrier options at 120.00 with the top side at 124.00 and 125.00
Thin liquidity over the holiday period could have an impact and drive it through, but be prepared for a battle because the interested party will have left buy orders
The options are reported to be expiring in January but no specific date is being given for the moment
For those unfamiliar a DNT is an option that gives the trader an agreed-upon payout if the price of the currency pair does not reach or surpass one of two predetermined barrier levels. The trader pays a premium and in turn receives the right to choose the position of the barriers, the time to expiration, and the payout to be received if the price fails to breach either barrier. With this type of option, the maximum possible loss is just the cost of setting up the option
Once either side (barrier) is hit then the option ceases and the writer wins.
USDJPY currently 120.25
Time for me to head away now. Merry Xmas to you all and thanks again for your brilliant support in 2015.