…and firmer US yields are helping bolster USD/JPY. The greenback is back above 91.00 after flirting with stops in the 90.30 area overnight. The JAL bankruptcy has sparked some risk aversion but there is also talk in the market of JAL having to unwind currency hedges as a result of the bankruptcy. Presumably they would have to buy USD/JPY and JPY crosses to unwind hedges.
US equities are bouncing sharply this morning and are now up 0.7% after falling almost 0.5% in pre-market trading. 2- year note yields are at 0.89% after dipping below 0.85% overnight.
91.12 is capping gains near-term after triggering a few stops above recent 91.05 highs. Next resistance is at 91.32…
