Could hit the USDJPY
Bloomberg is reporting that Japan's Government Pension Investment Fund has started to hedge overseas bond investments.
The move could tilt the USDJPY lower and push the price to the lower end of the recent range.
The author notes that the "details are sketchy", but it is worth keeping an eye on.
The USDJPY has moved lower and trades at new session lows at 108.479. The high for the day was up at 108.683. The next target comes in at 108.37 (high from July 16) and then the 100 hour MA/trend line at 108.308. The 200 hour MA is lower at 108.089. The recent lows are down at 107.20 (low for July) and the low for June was down at 106.77.
First things first, if the "sketchy details" are true, a break below the 100 hour MA and trend line at 108.308 would tilt the bias more to the downside for the pair.
