Dealers say the swift bounce seen in USD/JPY in the last hour may have been engineered by our friends at the BOJ. Rumor has it the central bank has placed some bids below the market, prompting dealers to cover short positions.
USD/JPY reached 89.83 before the rally cooled. It trades now at 89.57.
GBP/JPY fell to record lows earlier today, overcoming the very weak levels seen at the end of December when the market could not sell enough sterling. IThat cross is a shade higher now, at 130.46 from 129.66 lows.
