• USD/JPY recovery from last weeks low since Sept at 1.3988 peaked 144.03 Fri

• Comparatively tight 1.4330-89 inside day on Monday (EBS)

• Key resistance at 144.37 - 23.6% Fibo retrace of 2025's 158.88-139.88 drop

• Above is falling 21-dma 144.78, 38.2% Fibo 147.14 and 50dma at 147.45

• Option implied volatility under pressure to recognise current consolidation

• Options not currently betting on much BoJ induced FX volatility Thursday

• Friday options perhaps a better alternative with monthly U.S. jobs data, too

• USD/JPY options maintain a high premium and demand for sub 140.00 JPY calls

• Beware value month-end FX rebalancing which favours USD
JPY=EBS

(Richard Pace is a Reuters market analyst. The views expressed are his own)