USDJPY continues to dominate as indeed do all JPY crosses.
I said yesterday that I thought 97.50 would be pivotal and that a break could signal sharp declines.
Well, we certainly got a decent move down to 95.80 but equally we’ve seen a sharp rally back too.
The key factor here for the volatility remains the one that says a country that is witnessing/encouraging huge outflows of currency due to its monetary policy objectives is also, as seen in the past 24 hours, at the same time cited as the safe haven of choice over say, Switzerland. And that’s the bit that’s not really making sense to me, although I accept that potential SNB intervention to prevent CHF appreciation may well be a deterrent.
But all the time this scenario prevails, and global uncertainties continue, then we’re not going to go anywhere in a straight line in yen pairs.
