A second push higher in USD/JPY has been capped at 99.53 despite wild optimism in the S&P 500, which is now up 1% on the day.
I like risk trades but it’s hard to jump on board when these rallies aren’t coming on the back of any good news. My suspicion is that economic bears tried to short stocks and yen crosses but are throwing in the towel.
With the second failure at 99.53, that’s becoming an important near-term level but the big offers remain at 99.70 and 99.90/100.00.
