There is no doubt that the market is already significantly long of the JPY crosses but there is also no doubt that the Yen bearishness of recent weeks is as strong as ever. Macro funds are reportedly on the bid in USD/JPY near 81.50 as they look to add to their long positions and whilst we have seen somewhat of a turnaround today in EUR/JPY, its probably premature to start calling an end to the trend. The up-trend got a push forward on Friday in thin markets and Asia has simply undone that part of the move, as it so often does. Now if both Europe and the US have down sessions in the Yen crosses, then that would be a different matter altogether…
