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Forex pairs in this Article » USD/JPY
FXstreet.com (Bali) - The Japanese Yen was the unusual leader of the FX board on Tuesday, with traders continuing to square up Yen shorts ahead of the FOMC coupled with US equities failing to enjoy follow through as caution sets in.

Nikkei outlook

Looking ahead, the Nikkei 225, after breaking a multi-decade (from 1991) trendline, it communicates it may be ready to seek higher quotes into next year. However, short term, choppy conditions into year-end within 15.000-15800 are expected, which translates into no clear lead to drive Yen prices in Asia. That being said, the Nikkei 225 shows strong upside momentum at the open (foreign purchasers to blame), with price action suggesting it may be forming a triangle from dec 2 highs short term.

USD/JPY outlook

As per the USD/JPY, after 35 up days since last retest of triangle bottom side prior to its breakout, in what seems to be an 11th wave count H4, 3rd wave up daily, traders are taking a breather, with risk of downside correction within 101.30-103.40 range limits increasing.

USD/JPY option expirations

Looking at the options board, there is a very large USD/JPY vanilla expiration today ?, with key levels to keep an eye on as follow, "$500 mln 102.50, $2 bln 103.00, $1.4 bln 103.50 and $1 bln 104.00, with smaller 102.00, 102.60, 102.80-85, 102.95 and 103.20 strikes too", as noted by Haruya Ida from IFR Markets.
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