After the USDJPY predictably, if briefly, touched 105.00 last night as expected...
USDJPY going for 105 tonight
— zerohedge (@zerohedge) December 26, 2013 [3]
... following some mixed data out of Japan including stronger than expected inflation and cash compensation, even if regular wages failed to increase for an 18th consecutive month, it seems that the entire move was driven to cash out a 105 one-touch digital option.
This morning, the stop hunts continue, only this time in the EURUSD, which has been on a steady upward trajectory and starting below 1.37 has crossed nearly 200 pips in the matter of 12 hours, and moments ago stopped just shy of 1.3900 where it seems another one touch digital threshold can be found.Depending on how much money the seller stands to lose should 1.39 be taken out, expect a fierce (or not so fierce) defense of the barrier.
[4]
Sadly, these kinds of intraday and year end shenanigans are now all too common, and the lack of liquidity and the preponderance of algo traders only makes the gimmickry behind the scenes that much more apparent. We wonder just which chat room cabal is responsible and will earn millions for the two manipulation of the two key currency pairs overnight, while retail investors everywhere are stopped out of their positions.