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USD/JPY – Gamma buyers defending 98.00?

FXstreet.com (Barcelona) – Talk from early Asian traders has it that a big 98.00 option is rolling off later in New York, which suggests that gamma traders might be active buying dips with offer from exporters reported above 50.

If the information is accurate, intraday traders may have a 50+ pips to trade off, with risk skewed to the upside though, as technical look constructive after the vigorous recovery off 97.00 and Libya tensions having receded one notch.

According to Kathy Lien, Co-Founder at BKAssetManagement: “The spot movement is increasingly driven by what goes on in the options market. When the …read more