I must say I really feel like going limit short USD/JPY and GBP/JPY after the rather toothless measures taken by the BoJ yesterday afternoon but as Jamie so rightly pointed out in his earlier commentary, this might merely be a first step. Central banks do have a habit of giving the market a clear warning as to their intentions and giving people a chance to cover/hedge and perhaps that is what we are seeing in this case. Dealers remain very wary especially in USD/JPY, that we may see another topside clean-out especially if additional BoJ measures are followed up by MoF intervention. We could be in for a nervous morning and I’m joining with the Nervous Nellies this morning and I’m avoiding all JPY pairs.
Good luck today.
