Why USD/JPY down in asian trading jan 16 2012

forex trading outlook today - why USD/JPY down in asian trading jan 16 2012 : The U.S. Dollar was lower against the Japanese Yen on Monday. USD/JPY was trading at 76.85, down 0.15% at time of writing. The pair was likely to find support at 76.67, Friday’s low, and resistance at 77.08, Monday’s high.

Meanwhile, the U.S. Dollar was up against the Euro and the British Pound, with EUR/USD shedding 0.30% to hit 1.2640 and GBP/USD falling 0.08% to hit 1.5306.

EUR/JPY, USD/JPY Flows: EUR/JPY eye 97 Options; Nikkei -1.4% on risk aversion

USD/JPY at 76.90-93. with focus on EUR/JPY plays. EUR/JPY hit 11-year lows around 97.20, now 97.30-35. focus on talks of huge option barriers at 97.00/96.50 and below - talks of huge stoploss on break all the way to 95.00 - after huge stops at 97.25 taken out. EUR/JPY at lowest level since Dec 12 2000 96.94.

EUR/JPY 1-m vols levels seen at 11.8725%, from 11.7675%. Levels at 11.385/12.360%. R/r -1.24/-0.555%. 3-m Vols 12.50/13.245%, r/r -2.38%/-1.855%. Focus on downside risks/ options barriers, digitals K-O in EUR/JPY - 97.00/96.50 all the way to 95.00 and then psychological 90.00. EUR/JPY all time lows 88.87 seen on Oct 26 2000.

USD/JPY at 76.90-93, focus on talks of semi-official, pension funds, Kampo bids at 76.50-60, stoploss below 76.45-50. Nikkei -1.23% on risk aversion after eurozone downgrades. More downside seen. Good to watch for any BoJ/MoF rumours - rate checks in EUR/JPY - though Japan likely to refrain from intervention after criticism from US Treasury Dept, and ahead last week's talks between Treasury Sec Tim Geithner and MoF Jun Azumi. EUR/JPY eye 95.00, USD/JPY eye 76.00 - then all time lows of 75.31 - seen on Oct 31 2011. WL

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