Seems kinda curious that USD/JPY has been able to hold up so well despite broad-based dollar weakness today and more comments from the Japanese MOF raising doubts that the government will do anything to weaken the JPY to maintain export competitiveness.
There seem to be three reasons. First, traders report demand in USD/JPY today from a sovereign wealth fund. They also see continued demand from Japanese retail investors. Finally, there seems to be a reversion to the “risk-on/sell yen” trade that dominated the spring and early summer months of 2009.
Large offers are eyed toward 90.30 on rallies, traders report. We trade now at 89.67 and 133.45 versus the euro.
