- Trend highs at 103.70 were untested and the market ran out of momentum above 103.00 this time;
- All credible reports suggest that the market is sitting very short of Yen;
- Japanese investors have reportedly started to off-load overseas assets (albeit still in modest amounts) ahead of the capital gains hike in January.
I prefer to play USD/JPY from the short side for now but don’t get too carried away as market sentiment is still bearish on Yen. Sell any intraday rallies towards 102.60 and start booking profits in coming sessions if we get close to 101.00.