JPY traded on an easier footing, with the upturn in risk appetite encouraging interest for speculative trades. USD-JPY rallied as high as 93.34 in early Europe after reports of very good buying interest in to 92.80 in Asia after a U.S. name in good size. There were reports of good quasi official interest around 91.75-80 on Monday and speculation in Europe has centered on the Asian lows, with sovereign names raising their interest as USD-JPY and the cross benefited from the equity market rally. EUR-JPY traded up to 130.67 highs, but was capped by good standing offer layered from 130.50 up to 131.00. Option expiries could feature over the course of the session, with USD-JPY interest at 93.00 and 93.20, while EUR-JPY strikes are noted higher up at 131.50 and 132.00. Elsewhere, TFX margin data revealed that traders had increased their net long positions in USD-JPY and cross-JPY by 9000 contracts on Friday to 212,401, which indicates that some had taken advantage of last week's firm JPY tone.
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