JPY crosses/USD/JPY

USD/JPY failing to rally hard after FinMin comments

Japan will buy ESM bonds as early as today and this has seen the Yen crosses spike around the place but without any major impact. The EUR is mildly higher after touching 1.3140 against the USD but USD/JPY is looking heavy after rallying to 87.80 but has fallen back to 87.60. Yen bears will be slightly disappointed by the lack of reaction and this might be yet another sign that Yen shorts have reached saturation levels?

  1. UBS reporting today that asset managers & hedge funds sold U/J last week to take profit and Citi also noting that their positioning is neutral because of profit-taking.

    A retracement is due, it seems large money is not so willing anymore to buy that high.

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