Yen crosses likely to have a quiet session
I can’t say I have done any exhaustive research on the phenomenon, but it seems to me that markets tend to go quiet for a session or two after a big build-up to a major risk event. This is what I expect to happen to the Yen crosses, that we have a few sessions of very quiet trade especially here in Asia.
The two major conflicting factors are risk sentiment, which is positive and therefore bullish on Yen crosses, and positioning, which is still heavily short of Yen and therefore should keep rallies capped in all the major Yen pairs. If they net each other out, then that strengthens the case for some fairly quiet rangey markets (famous last words 🙂 ).
I’m away for a few hours, catch you later.