USD/JPY still looking very heavy
I think the big factor at play here is the positional liquidation by one or more of the huge macro funds. They were running positions in the tens of billions and of course once they start selling, panic usually ensues. We’ve seen unusual markets across all the major currencies which have been totally driven by big flows and this looks likely to continue. Remember that many big professional traders started buying USD/JPY when it was near 80.00 and they are booking profits by selling above 95.00.
For now I remain in the sell rally camp and levels below 90.00 still look achievable to me, if the heavy liquidation continues.
95.00/97.00 are the levels to watch on an intraday basis.