A look at what is on the board for todayThere are two notable expiry levels to watch out for on the day, as highlighted in bold below.

The first one is for EUR/USD at the 1.1300 level, with the strike sitting roughly 30 pips away from the spot price. The expiry size is meaningful and with price already relatively close, there may be some pull towards 1.1300 as the cut approaches. That especially if the dollar continues to push higher, with the selloff in Treasuries still underpinning the currency.

Just keep in mind though that the June low for EUR/USD at 1.1324 is a key technical consideration too. That is providing strong support on the daily chart, so sellers will have to decisively break that in trying to convince of a stronger push towards 1.1300.

But if EUR/USD pushes higher during the session ahead, the above expiry's influence should diminish fairly quickly. That as the price movement will also reinforce a defense of the key technical level outlined at 1.1324.

Then, there is one for USD/JPY at the 157.00 level with the spot price sitting less than 15 pips relative to the strike currently.

The combination of its size and proximity means 157.00 could act as a pinning level through the European session and into the cut later.

In other words, any modest downside move could see option-related flows help pull USD/JPY back towards the strike. Meanwhile, attempts to move significantly away from 157.00 may face some opposing hedging flows.

But as mentioned above, dollar sentiment is also key today with watchful eyes on the bond market and whether long-end yields will continue to break higher.

Besides that, month-end and quarter-end flows will also be a consideration that could inject further volatility to price movements as we navigate through the session ahead. That will be something to keep in mind just in case we do see exacerbated price movements across major pairs.

For more information on how to use this data, you may refer to this post here and/or refer to the Q&A below.Q&A

• What exactly is an FX option expiry?
  An FX option gives the holder the right, but not the obligation, to exchange one currency for another at a predetermined exchange rate — known as the strike price — before or at a specified expiry.

• Why can a large expiry influence the spot market?
  The key reason is hedging activity. Banks and option dealers that have sold options often hedge their exposure by buying or selling the underlying currency pair. As spot moves closer to the strike, those hedges may need to be adjusted. That can create additional buying or selling flows in the spot market.

• Does a large expiry automatically mean price will move towards the strike?
  No. This is one of the most important points for traders. An option expiry is context, not a trading signal. Example: If EUR/USD is trading at 1.1600 and there is a large expiry at 1.1800, that expiry is unlikely to matter much on its own. But if EUR/USD is trading at 1.1790 with only a few hours remaining before expiry, the strike becomes considerably more relevant.

• What factors are important in viewing an FX option expiry?
  The potential influence generally depends on several factors: Size of the expiry, distance between spot and the strike, time remaining until expiry, current market liquidity, and whether there are stronger macro or headline-driven forces at work.

• Can option expiries act as support or resistance?
  Sometimes. A large strike can temporarily behave like support, resistance or a magnet because of hedging flows. But this should not be confused with traditional technical support or resistance. Once the option expires, the effect may disappear entirely.

• What is the main takeaway?
  FX option expiries do not tell traders where the market must go. Instead, they can help explain why price may behave differently around a particular level.

• How is that useful to my trading?
  For short-term traders, that makes option expiries a useful addition to the broader picture alongside technical levels, economic data, central bank expectations and headline risk.#EURUSD #USDJPY