USD/JPY has seen a vigorous mark up in prices at the Tokyo fix, sending the exchange rate from session lows at 112.30 to new highs circa 112.70/75 in just under 30 minutes. Buyers absorb initial selling flows What we've witnessed in the USD/JPY is a text-book example of institutional market players grabbing liquidity below the post NY established range between 112.50 and 112.35, which turned out to be a very successful buying campaign, as the initial selling in Tokyo was being absorbed, and once enough size accumulated, the mark up phase followed. USD/JPY: Bullish s/t Should the bullish momentum continue, with a minor correction, at least, now being expected, the Wednesday session high at 112.90 ahead of 113.00 should come into focus. On the downside, 112.50 is immediate support. Note, options pricing have seen a bullish turn, with today's calls and puts in the 6J contract being priced at the same levels, with market makers no longer asking for a premium to hold J6 calls. This alone is a significant bullish development for the USD/JPY market. For more information, read our latest forex news.