EUR/JPY: Big levels to watch at 113.50/114.00

The talk at the latter end of last week around the market was that China was the big seller in EUR/JPY above 113.00. This would seem to make sense given China’s renewed interest in Japanese financial instruments like JGBs and the shaky financial footings in Europe. There are also some very big options plays in EUR/JPY at the moment and once important levels break, we could see the floodgates opening.

I expect to see some massive stops above 113.50 and 114.00 and these orders could come under serious scrutiny early this week.