Probably a case of cold feet ahead of this weekend’s international gabfest on Washington.
Look for offers into this strength just above the market, in the 82.10/20 area.
What is to come from this weekend’s meetings? No grand deal to rebalance the world’s exchange rate regime.
Perhaps the US and EU will look the other way and allow the MOF to try and boost USD/JPY from 15-year lows to try and spark the world’s second (or third), depending on who’s counting) economy back to life. USD/JPY’s weakness is not suddenly gonna cause Japanese consumers to buy Buicks, so the US has little to lose if USD/JPY is 80 or 90…It really won’t make a material difference to us.
EUR/JPY is miles below the 200-week average ( rough estimate of fair value) which is up at 142.00, si Europe has little to squawk about either. Whether intervention works or not, that’s an entirely different story…
