USD/JPY has been belted again today, weighed down by hedge funds exiting huge long positions in JPY crosses. AUD/JPY has been the victim du jour, with one firm said to have dumped AUD 750 mln on the market earlier today.
As the world de-risks, it is the dollar and JPY, the funding currencies with the lowest interest rates, which must be bought back by the leveraged community. There is little end in site to that trend.
