Despite the more upbeat tone in financial markets this morning, the JPY pairs are curiously offered. Traders report moderate selling of USD/JPY from US real money accounts as well as selling from Japanese prop desks.
At the end of the day, risk appetite will likely determine the near-term path for USD/JPY. I got tricked into believing that “this time is different” a couple of weeks ago when USD/JPY held up well in the 94s while EUR/USD was getting slaughtered on a daily basis.
If EUR/USD recovers, I suspect the JPY crosses will recover as well. I won’t get fooled again.
USD/JPY trades now at 92.50. Support is down at 92.30/35.
