Traders report offers at the 134.50 level in EUR/JPY as the rally stalled at that level moments ago. Stop-loss buy orders are perched above that level but offers return at 134.75 and especially 135.00, where a barrier option is rumored.
EUR/JPY is caught between Japan-bound flows from Japanese investors bringing money home as investment trusts expire and reflation trades where traders sell the JPY in favor of higher-yielding alternatives like AUD and NZD. The “Toshin” in-flows are seen most accutely during Tokup trading hours and tend to dry up during the US session.
