There are just a couple of expiries to take note of on the day, as highlighted in bold below.
They are both for USD/JPY at the 160.00 and 160.50 levels. Much like before, the expiries here may not be of that much influence in dictating price action for the currency pair.
As things stand, intervention risks remain the name of the game for USD/JPY. As price action holds above 160.00, all eyes will be on potential catalysts to push the limit further in trying to test Japan’s ministry of finance.
Given the circumstances, traders are not taking it too far above 160.00 so as to get shot down right away. However, the US CPI report later today might just give a reason to try and test the upside that little more – especially if the numbers are hot.
But on any sudden push up, just be wary that Tokyo officials might respond in due kind. That being said, I reckon they might want to wait until after the BOJ decision next week before taking further action. That is if USD/JPY continues to run up in the aftermath of the central bank meeting.
Besides that, there isn’t much else to work with on the expiries board for today.
As for trading sentiment in general, the focus will stay on the dollar and general risk mood. As such, US-Iran developments and the US CPI report today are going to be the key drivers in the day ahead.
For more information on how to use this data, you may refer to this post here.
