USD/JPY: Massive expiries ($27 billion) over next 5 days

Plenty of excellent information in the chat-room today and thanks to 888 for publishing this report from BofAML.

“Publicly available data shows there are $27,000,000,000 of USDJPY strikes expiring (103-103.90) over the next 5 business days. This figure, even if only half of this was open interest , is in the upper regions of the largest exposure market has seen in years. The markets expectations for a Fed Taper have been gradually increasing, but with that much exposure it would take a real outside surprise for USDJPY to be able to break itself away from the current 102.60/103.40 range – especially when one considers a large percentage of that $27,000,000,000 is centred around 103 and expires over the next 36hrs. BofAML’s APAC trading desk is flat in USDJPY here and anxiously awaits 2pm EST on Wednesday.”