USD/JPY is maintaining firm support around ¥159.00, with NY cut options also being observed today. Meanwhile, resistance around ¥159.25 and ¥159.50 may limit any rebound.
Multiple options, including NY cut options, have been observed in USD/JPY today, and the pair continues to hold support around ¥159.00. Some market participants have pointed to strengthening resistance around the ¥159.25 threshold, making gains more likely to be capped.
In addition, ¥159.50 is viewed as another level where upside may be constrained, with dollar call options potentially having an impact. The market is focused on the possibility that rebounds will continue to lack momentum.
At the same time, some market participants expect stop-loss buying above ¥159.60, and caution is said to be warranted over sharp price moves. The combination of NY cut effects and options is thought to be shaping the short-term trading range.
Overall, USD/JPY remains caught between moves toward the mid-¥159 range and the options-related overhead pressure that is limiting those moves. The short-term price action is viewed as likely to remain limited.