USD/JPY has bounced back to 91.50 after a dip into the high 91-teens amid talk of Asian central bank buying to defend barrier options at 91.00. Technical buying is seen as well as opportunitic shorts cover ahead of the 90.90 lows posted back in October. EUR/JPY is firming as a result as EUR/USD extends its gains toward the key 1.3300 resistance point.
Air is clearly being let out of the post-credit bubble dollar bubble (remember, we’ve had sequential bubbles for more than a decade as global savings tries to find a home). The last buuble to burst may be the yen.
