USD/JPY is a little firmer on the day, presently up at 97.90. One factor which has been lending the JPY some much needed support of late is year end repatriation flows. Given that we’re fast approaching the end of March these flows are very soon going to dry up. This could leave the JPY a little more vulnerable, especially if we see another rally in global stockmarkets which will erode further the yens’ safe haven premium.
At the end of the day Japanese economic fundamentals remain very poor and the political system gridlocked unable to do much of anything. Upside for USD/JPY would seem to beckon.
Well as they say, timings everything.
