UBS: The USD/JPY rising to the 163 to 165 range may trigger stop-loss orders for yen long positions.

As the yen exchange rate falls to its lowest level since 1986, UBS says that market focus has shifted to the range of 163 to 165 yen against the dollar. "A large number of stop-loss orders and knocked-out option positions are still concentrated at this level, and many strategists believe that the official intervention risk corresponding to this range will also significantly increase." A UBS trading desk report shows that Japanese retail forex investors are still generally bullish on the yen, with many already building substantial long positions on the yen, betting that the Japanese government will intervene in the forex market again. The report points out that when the dollar breaks through 163 yen, there may be an increase in stop-loss activity in the market. It is believed that many traders have set their more significant risk control ranges around 164 to 165 yen.