• With tapering in the US looking less likely, the market has been ploughing back into ‘risk-on’ trades like the Yen crosses;
  • But USD bearish sentiment after the debt-deal debacle is likely to outweigh Yen bearishness imho;
  • One big Japanese bank was selling large amounts of USD every 10/15 pips on the way up towards 99.00;
  • Hear-say still suggests that there are some very large macro USD/JPY positions out there which might get scared;
  • Overall I prefer to play this pair from the short side but there are easier trades out there.