USD/JPY is consolidating gains on the low 94.20s with demand quite steady this afternoon, dealers report.
Earlier reports about big Japanese institutional demand for USD/JPY have been boomeranging around the market all day, helping explain the inexplicable to some as the yen decoupled from the risk-aversion trade. Those flows combined with Japanese retail investors finally turning around the battleship from perpetually short yen to finally net long yen set the stage for the big moves seen in recent sessions.
94.63 remains resistance near-term. A break and close above that level sets the stage for a durable bottom in USD/JPY and the potential for levels above 100 in the days and weeks ahead.
