USD/JPY: Underpinned by covering on crosses and rising US yields
- Significant optionality reported near 98.50 which should prove magnetic but will also be tough to break through.
- Rising US yields will be encouraging the dip-buyers to return to USD/JPY.
- Certain crosses like AUD/JPY have made significant technically bullish moves in last 24 hours.
- But, prime brokers still reporting sell-rally interest in pairs like GBP/JPY.
Looks like we should get some range trading here, broadly between 97.80/98.60 I’d suggest.