USD/JPY: Looking soft but should stay range-bound
After the initial push higher earlier today on election rumours, USD/JPY has given up those gains and fallen 30 pips on risk aversion plays in the Yen crosses. There is still institutional buying and option protection ahead of 79.00 and that level should hold firm for a few days yet. I remain very bearish in the medium term, and I expect macro longs to get squeezed before Christmas. No big macro stops are reported until 78.50 breaks, then watch out!