USD/JPY: Dead-heat in race to the bottom
- The market doesn’t like either currency at the moment and broad sideways trading is very likely to continue between 95.50/101.50 (see chart);
- My bias is tending towards slightly bullish given how strong momentum is developing in some of the crosses, EUR/JPY in particular;
- Positioning is the great unknown here but we’ve seen little evidence to suggest that the big leveraged accounts are likely to blink any-time soon so I guess there’s no point in trying to anticipate that;
- We may get a quick burst of profit taking in the Yen crosses once Tokyo opens, but any dips to 134.70 in EUR/JPY or 94.70 in AUD/JPY certainly look like buying opportunities.