By Richard Pace — Mar 28 - 04:05 AM
Defence of well touted 152.00 barrier options helping to cap USD/JPY
However, there's talk that several of these options will expire next week
Soon-to-expire barrier options typically field the biggest defence
There will also be those who stand to benefit if they are erased pre expiry
Market is short gamma above 152.00 which could fuel gains/volatility above
Higher risk of intervention makes 153 barriers a much harder-to-reach target
FX option implied volatility higher - 1-month 7.8 vs l-term low 7.1
There's conflict between short gamma and intervention fears nL5N3G51G5
For more click on FXBUZ
Source:
Refinitiv IFR Research/Market Commentary