07:12 USD/JPY: On The Rebound From A 100.02 Low, Good Bids Pre-100.00 Tokyo, March 13. USD/JPY looks to be on the rebound after a number of attempts to break below 100.00. USD/JPY traded through a major multi-year support level at 101.30- 40 and presumed option barriers at 101.00, 100.75, 100.50 and 100.25, tripping stops below each level. Why not below 100.00? The answer may be that many players, and heavy-hitters at that, would not like to see it back below 100.00. Japanese authorities are included with FinMin Nukaga and ViceMin Shinohara on the wires earlier on the first test down towards 100.00 warning of excessive FX volatility and moves. With USD/JPY down close to 8-yen over the past two weeks, this is no surprise. A break below 100.00 could also result in pandemonium amongst Japanese exporters, many of whom are in possession of 105+ USD puts with knock-outs at this level. Those at MoF managing Japan"s $1 trln+ foreign reserves, mostly in USD, are probably not that amused either. It may take a much larger push to break below 100.00 but, given overall USD weakness, further attempts may be seen tonight. There is really no major supports in USD/JPY till the 79.75 record low seen back in April "95. USD/JPY currently trades 100.38/41, up on the back of some Asian spec short-covering and the bids ahead of 100.00.
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