During the FX trading week the thinnest interbank liquidity time of each day is the period between NY close and Tokyo open. Which is pretty much where we are now… except its even worse than normal due to the US holiday.
USD/JPY has found buyers ahead of and since the NY close , especially as the headline hit that Japan – Sankei reports that Abe is to dissolve parliament this month.
I am still treating that report as another rumour; they started over the weekend, have been denied, but have persistently resurfaced since.
The market is working on the ‘where there is smoke there is fire’ principle, though … USD/JPY is knocking on the door of 116.00:
