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      FX Option Expiries Highlight Key Levels for EUR/USD and USD/JPY

      On October 21, significant foreign exchange option expiries are set to impact trading, particularly for the EUR/USD and USD/JPY currency pairs. For EUR/USD, expiries are concentrated in the 1.1195 to 1.1200 range, with a total of €4.3 billion at stake. This concentration could influence price movements towards the 1.1200 level as traders position themselves ahead of the expiry.

      In addition to the EUR/USD expiries, the USD/JPY pair has an expiry at the 158.00 level, which is less than 10 pips from the current spot price. This level has acted as a magnet for price action over the past two weeks, and traders will be watching closely as the expiry approaches. The 200-day moving average at 158.57 may also play a crucial role in limiting any upward momentum for USD/JPY.

      Market sentiment for both the euro and the dollar remains closely tied to broader economic indicators, particularly in the bond market. The yield spread between French and German 10-year bonds recently reached its highest level since 2012, which poses a risk for the euro. Meanwhile, U.S. Treasury yields have remained relatively stable, providing some breathing room for the dollar in the early part of the week. Overall, while option expiries can influence short-term price movements, fundamental factors will likely have a more significant impact on market direction.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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