USD/JPY reached a high of 109.74 earlier and there is talk of option-related supply ahead of 109.75. As the barriers earlier, this is unlikely to be much of an obstacle and the focus is now on the big 110.00 resistance level. A breakout above would likely trigger some massive stops from option players, but I don’t expect to see it going straight up to 111 since there should be plenty of profit-taking selling up there. USD/JPY has basically gone up straight for more than a month now and a rally above 110.00 sure seems like the perfect place to book some profits.
To the downside, keep an eye on 109.20 as bids are reported there, while trailing stops are resting through 109.15 and in larger size sub-109.00.
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