The professional market has been short JPY across the board and we saw some hefty profit taking emerge yesterday after the over-stretch to take out 110.00 USD/JPY barriers couldn’t be maintained. Other pairs like GBP/JPY broke out of holding patterns and triggered heavy trailing stops.
In the shorter-term, I prefer selling any 50/60 pip rallies in USD/JPY as I expect that we may get some 108/110 consolidation for a few days.
If you’re looking for a bit more volatility, then GBP/JPY looks like it might offer the bears some decent opportunities.