JPY and Oil Updates via the FXWW Chatroom

USDJPY ovemight 10-delta risk reversal is trading 4 vols for the downside, showing how extreme market positioning got to. USDJPY has marked higher highs and lower lows for most of the week. We could call this a short-term trend. While tumover and interest seem fairly light due to the US holiday, month-end flows could spice things up. Keep it tight for the rest of the week with a slight bias to the short side. (UBS) 

GS: Oil: Comments from Saudi Oil Minister Ali Al-Naimi late in NY time yesterday, saying that tumbling crude prices will stabilise on their own, seem to be garnering a good deal of attention in relation to the price move.

Ahead of the OPEC meeting today, Naimi also said that Persian Gulf countries have reached a consensus on output and OPEC will take a “unified position,” without elaborating on what they agreed to do. 

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