Category in JPY crosses

Early Europe keeping it tight; no directional moves yet

Unless we get some unexpected breaking news, flows and orders are likely to dominate proceedings in Europe and I would expect the crosses to continue to dominate. There will be positional adjustment ahead of the BOJ tomorrow and corporate flows will also be heavy for the beginning of the quarter. I’m sticking with my long-JPY positions and

Yen positioning reports suggest consolidation phase may soon end

Some interesting reports coming out of the interbank market suggest that overall Yen short-positioning has been reduced by more than 60% over the last few weeks. This backs up the reports of heavy USD/JPY and EUR/JPY selling by some of the big hedge funds. The market is still short of Yen, but at very reasonable levels, and