87.80 to 88.80 has it encapsulated. Abe is away touring South East Asia. And while the cats away the mice are behaving themselves – not too much talk of a weak Yen for fear of inflaming ‘currency war’ accusations. We seem to be in a position of awaiting the next comment for short-term direction.The comments are flowing towards favouring the Yen having weakened enough, but this could change, sending us on another leg higher in the USD/JPY. Maybe we have to wait until Abe is safely back on home soil before the comments can swing back to a favouring a weaker Yen – something to watch out for.
So, 87.80 to 88.80 for now. If you want to play some intraday moves there is some buying down around 88.20/30 and sellers 88.60/70.
EUR/JPY – no standout interest as of yet; watch for buy interest to potentially emerge at 117.00 and therabouts.
