My tip this morning was for a 15 pip range, and I have totally underestimated the activity levels of USD/JPY traders as we’ve already had a huge 16 pip range. It doesn’t look like we are going to see anything exciting happen here.
There has been some heavy selling of overseas bonds by Japanese investors over the last few days and this is thought to be weighing on all JPY crosses, especially during the Asian sessions. The European and NY sessions have been eager to buy but I’m hearing from the interbank market that many of these buyers are leveraged speculators and that the stops below 75.90 are beginning to get very large indeed. Not many expect this pair to break lower, but what can’t go up must eventually go down.
