USD/JPY has edged back to 109.26 after running into offers just ahead of 109.50. The initial rally came on a report that the government pension fund will increase its allocation of stocks. It’s an old story and it might be the pullback in stocks that’s equally important.
The S&P 500 has slipped to 1990 after brushing up against 2000.
Nikkei futures have turned higher and that will be an important market to watch.
Looking ahead, the Bank of Japan decision later is the major event on the calendar and if they swing dovishly, USD/JPY could rally to 110.00 and well beyond.
