EURJPY TECHS: Clears Bull Trigger

Treasury options leaning toward low delta calls - large Jan'26 buyer resumes, SOFR option volumes remained rather modest. Underlying futures weaker, near middle session range - bit of risk as hopes of ending US Gov shutdown rise after eight Democrats voted with Rep's on CR to fund gov through end of January. Projected rate cut pricing retreats vs morning levels (*): Dec'25 at -15.5bp (-16.3bp), Jan'26 at -25.1bp (-26.1bp), Mar'26 at -35.2bp (-35.8bp), Apr'26 at -41.3bp (-41.6bp).

• Treasury Options:
  • 2,200 USZ5 115/119 strangles, 18 ref 116-31
  • 1,500 USF6 115/116/117 put flys
  • +25,000 TYF6 111.5 puts, 22 
  • over 52,000 TYF6 113 calls, 42-45, ref 112-23 to -22.5
  • 1,300 TUZ5 104.5/104.87 put spds ref 104-05.38
  • 1,100 FVZ5 110.75/FVF6 110.5 call spds
  • +10,000 TYF5 113.5 calls, 31 (adds to +50k at 27 earlier)
  • over 25,500 TY/wk2 TY 112.5 put spds, 11 (TYZ over)
  • 5,000 TYZ5 111/111.5/112.5 2x3x1 broken call flys ref 112-21
  • +50,000 TYF6 113.5 calls, 27 (last Thursday: +100,000 TYF6 113.5 calls, 30-32 vs. 112-18/0.32%)
  • over +/-15,400 TYZ5 113 calls, 16-17 ref 112-19
  • over 10,400 TYZ5 112.25 puts
  • 3,000 TYZ5 113.5/114 call spds ref 112-19 to -18
  • 1,200 TYZ5 110.75/111.75 put spds ref 112-18.5
  • 2,300 TYF6 111/112 put spds ref 112-15.5
  • -1,500 TYG6 113.5 calls, 39 vs. 112-15/0.35%
  • +3,000 wk4 TY 113.5 calls, 11
  • +1,000 TYH6 112.5 straddles, 226
  • -4,000 wk2 TY 113.25 calls, 3
  • +2,000 USF6 130 calls, 1
  • 1,000 FVZ5 108.25/108.5/108.75 put flys ref 109-07
  • +1,000 FVZ5 109.25 straddles, 34.5
  • +3,000 Thu wkly FV 109 puts, 1.5
  • 3,400 TYZ5 114.5 calls, 3 ref 112-19.5
• SOFR Options:
  • +10,000 0QZ5 96.50/96.62 put spds, 1.5 vs. 96.865 to -.87/0.10%
  • 3,000 0QX5 96.87 puts, 4.5 vs. 96.87/0.52%
  • 4,000 SFRZ5 96.37 calls, cab
  • over 4,000 SFRZ5 96.18 puts, 0.5 last
  • 1,000 SFRZ5 96.06/96.12/96.18 put flys ref 96.24

• After a brief retreat this morning - stocks are extending session highs late Monday as semiconductor makers rebounded from better selling last week. Currently, the DJIA trades up 340.21 points (0.72%) at 47327.16, S&P E-Minis up 97.5 points (1.44%) at 6851.25, Nasdaq up 513.6 points (2.2%) at 23518.31.
• Last week's IT valuations in the rear view as focus turned to optimism over the US Gov shutdown ending soon. Leading tech sector shares include: Palantir Technologies +9.00%, Western Digital +6.50%, Micron Technology +6.02%, NVIDIA +5.02%, Advanced Micro Devices +4.97% and Akamai Technologies +4.45%.
• Communication Services and Consumer Discretionary sector shares followed:
  • Alphabet +4.12%, Meta Platforms +1.86%, Match Group +1.43%, Walt Disney +1.43% and Netflix +1.23%.
  • Tesla Inc +3.82%, Wynn Resorts +3.67%, Expedia Group +3.59%, Ralph Lauren +3.54% and Lululemon Athletica +2.76%.
• Conversely, Health Care sector shares continued to lead declines in the second half - if the US Govt shutdown ends without an extension of Affordable Care Act (ACA) subsidies: Centene -8.20%, Molina Healthcare -7.23%, Humana -4.58%, HCA Healthcare -4.57% and Elevance Health -4.30%.

• RES 4: 155.89 High Feb 3
• RES 3: 155.53 2.00% retracement of the Jan 10 - Apr 22 bear leg
• RES 2: 154.80 High Feb 12
• RES 1: 154.48 High Nov 4 and the bull trigger 
• PRICE: 153.94 @ 16:21 GMT Nov 10 
• SUP 1: 152.55 20-day EMA
• SUP 2: 151.54 Low Oct 29   
• SUP 3: 150.77 50-day EMA  
• SUP 4: 149.38 Low Oct 17 

The trend structure in USDJPY is unchanged, it remains bullish and the latest shallow pullback appears corrective. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. The bull trigger is 154.48, the Nov 4 high. A break of this level would confirm a resumption of the uptrend and open 154.80, the Feb 12 high. First important support to watch lies at 152.46, the 20-day EMA.