USD/JPY has raced higher with little opposition with the markets focus mostly in the Swiss franc. We would have anticipated some CHF/JPY selling to hold back the USD/JPY but the price action suggests anything but. From a fundamental perspective, dealers may be looking at the limited options available to the BOJ and suspect they too may begin selling the home currency, a strategy they have used several times in the past.

Talk of demand for JPY for year-end book squaring has made the rounds earlier in the day and there are still reports of JPY buying at the 16:00 GMT fixing.

97.70 and 98.00 stops were triggered on the way up this morning.

126.10 major resistance is now within striking distance if those fixing flows do not materialise. Keep your seatbelt buckled.