Yesterday’s recommendation to sell USD/JPY rallies since the move is not being confirmed by a parallel rise in US short-term rates has turned out to be a bit of a clunker. Yields are a touch lower this morning but USD/JPY continues to march higher.
As the old adage goes, the market can stay irrational longer than you can stay solvent. Don’t let this one run to much more to the topside if you have it one.
Offers are noted in the 81.70/75 area with a barrier option at 81.75 rumored to be in play.
