The market has been holding an overwhelming long Yen position, prompting short-term traders to pine for a shrap short-covering rally in USD/JPY and JPY crosses. Yesterday’s failure to sustain a break of the 90.00 level has dampened those hopes as Mid-East investors were big sellers into strength. Since then, Japanese exporters have lowered offers and they are now said to be thick at 90.00,90.20/25 and 90.50.
Dealers have been content to play an 89.40/70 range for much of the session and see that playing out further in the hours ahead.
