There are just a couple of expiries to take note of on the day, as highlighted in bold below.
The first being for EUR/USD at the 1.1475 level. The expiries don’t tie much to any major technical significance but it does sit close to the 2 July high of 1.1472. As such, the expiries could play a part alongside the minor resistance there in keeping EUR/USD price action in check.
The currency pair looks to want to come up for air with the dollar dropping further following the softer US PPI data yesterday. So, there is some scope for a further extension higher on a firmer break of the minor resistance noted. The dollar is more muted today though, so that is helping to keep things relatively calmer as we look to the session ahead – for now at least.
Then, there is one for USD/JPY at the 162.00 level once again. The dollar may be weaker this week but the yen is also one to suffer alongside it. And that pretty much says a lot about the yen’s plight at the moment, with the currency really unable to get off the floor.
That said, the expiries should not see much of any impact as intervention risks continue to be the key driver in terms of influence for USD/JPY.
The path of least resistance remains for a move higher but traders have to be mindful in not wanting to push the limits of Japan’s ministry of finance.
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.
