There are just a couple of expiries to take note of on the day, as highlighted in bold below.
The first is for EUR/USD at the 1.1600 level. Once again, the expiries don’t tie to much technical significance. But as has been the case this week, they could still offer some pull or at least keep price action holding thereabouts if we do see any price extensions in the session ahead.
The bigger picture fit for EUR/USD is still seeing price action be more confined between the 100-day and 200-day moving averages at 1.1566 and 1.1631 respectively.
So, the expiries sit in between that and has a minor role to play in pulling price movements when there isn’t all too much else to work with before the main focus turns to the US jobs report later this week.
Then, there is one for USD/JPY at the 160.00 level. But as highlighted previously, this is one currency pair in which the expiries aren’t likely to have much of any influence.
As much as things have been a bit quieter as of late, it is still largely a psychological game when it comes to USD/JPY. With the pair continuing to be rather edgy and nervy around the 160 mark, it is clear that traders are fearing that an overstep above the figure level might draw intervention from either the US and/or Japan again.
So, it is a case of intervention risks helping to keep things more grounded for the pair in chasing a run above the 160 level more than anything else.
That being said, just be reminded that the pressure valve is certainly being turned on to near the limit based on the current setting. The US-Iran conflict continues to rage on and we’re seeing bond yields surge higher globally, with 10-year yields in the US even hitting 4.80% this week.
Traders might want to seek that as an excuse to push their agenda but will US/Japan authorities let them?
For more information on how to use this data, you may refer to this post here.
This article was written by Justin Low at investinglive.com.