Now its starting to become clear where some of the bigger flows have been coming from; Asian Sovereign names have been buying dips in EUR/USD on a regular basis over the last few days and in quite reasonable size. Some of the sizeable buying in USD/JPY has also been attributed to the same names. Some of the large macro hedge funds are also thought to be heavily short EUR/JPY and they no doubt have to cover some of their exposure as well.
At times we probably tend to focus too much on the billions of USD/JPY being sold by Japanese corporates and we forget about the tens of billions being bought in some of the Yen crosses.
