The market had a feast on what they thought was tasty USD/JPY offers around the 93.70 level after the US retail sales data but it is now choking on those dollars. A UK name sold a reasonable amount of USD/JPY and the bids scattered like flies. Some suspect that central banks, skittish about buying euros until the Greek debt crisis is settled, are buying JPY to diversify reserves.
What should be a very favorable USD/JPY backdrop based on rising risk appetites has juts turned a bit murky….
USD/JPY trades at 93.40.
