The tide is turning and both the S&P 500 and USD/JPY are well off the lows.
The latest round of buying has boosted USD/JPY to 118.58 from a low of 118.06. The problem with selling the US dollar is that you have to buy something else.
The knee jerk is to rush into yen in a flight to safety but as soon as the dust settles, the dollar finds its footing again. Fundamentally, Japan is no longer talking down the yen but the economy and inflation outlook are no better.
