Nikkei225 Faces Fresh Challenges from Strong Yen and Rising Oil Prices

The Japanese yen has strengthened to its strongest level in six months, surpassing the peak of 157.17 reached on August 3 after a joint intervention by the US and Japan.

The Nikkei225 index calls rose as much as 23% and puts fell as much as 15% following a 2.1% surge in the underlying yesterday, its best day in a month.

Rising oil prices, up another 1% to $92.34 today, and the stronger yen will test the Nikkei225's resolve to push past the psychological 67,000 level.