Flows and Orders/USD/JPY

USD/JPY: Very solid offers on interbank dealing systems at 80.20

Yen bears are having a real go today and they’ve already managed to work through really heavy offers at 80.00 in USD/JPY. They are now up against more heavy offers at 80.20 and it looks like stalemate for the moment.

  1. Just to add a little contrarian view (to my and your view):

    http://www.ft.com/intl/cms/s/0/f8a7f35c-1e6c-11e2-be82-00144feabdc0.html#axzz2AIwS7mI2

    Seems we could be on the edge for japan.

    “Each year, the MoF holds five meetings with the biggest 25 primary dealers in the JGB market to discuss their concerns. Friday‚Äôs special meeting is the first to be called by the dealers, said Ms Shirota. According to the regular schedule, the next meeting was due to be held in mid-November.
    Already, there are signs of tension in the bond market. While short and medium-term bonds remain stable, the extra yield that investors demand to hold 20-year government bonds instead of 10-year bonds has increased to 92 basis points, the most since July 1999, according to Bloomberg. Longer-term bonds tend to be more sensitive to questions of fiscal sustainability, say traders.”

  2. I think that on yen, the market now waits for results of meeting on October 30. To guess certainly it is difficult, but I think that key decisions at this meeting it will be accepted not, it happens later, most likely after elections in Japan.

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