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Forex pairs in this Article » USD/JPY (Bali) - The early sell-off in USD/JPY is being attributed to Mrs. Watanabe’s stop-loss orders triggered, which led to a quick decline to 101.77 even if there had been solid demand reported by Japanese importers and leveraged account.

With Nikkei futures capped by the 15,000 area - price back into the ichomoku cloud since early November 2013 -, and same case for USD/JPY, there is risk that rallies on the Nikkei/USDJPY may prove top-heavy/limited in coming sessions.

According to market sources, 1mth USDJPY vol opened back on a 10 handle, with volumes 2 times higher than where the low was last week.

Some market flows from Japanese prime brokerages have seen customer flows interested in downside options, with some also adding long dated topside on the USD/JPY decline, although most activity is on buyers of short dated topside.
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