USD/JPY Downside Firm; Many Bids Around 87.00

0128 GMT [Dow Jones] USD/JPY now 87.40, biased down on view Fed to remain on hold for months; but breaking below 87.10, marked in January, will be "a bit difficult" as there are "so many" options-related USD-buying orders lined up at 87.00 and 87.10, say senior dealers at major banks in Tokyo; "given today's thin trading volume, pushing the dollar below Y87.10 is little difficult, at least during Asian trading time," says one. Adds many options-related defensive buying orders above 87.00 means great amount of stop-loss selling orders just below 87.00; if those sell orders triggered, pair could fall below 86.50 quickly.(TMO)

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