Local sellers and foreign buyers. We’ve seen this story a thousand times. Japanese investors continue to sell into USD/JPY strength, as they do on a daily basis, but there has been a notable uptick in speculative demand, bankers note. Volume is well above normal today with activity skewed toward speculative buying on an improving technical backdrop. Jawboning from the new finance minister and threats of foreign bond buying by the Japanese authorities are helping improve sentiment toward the greenback. The QE3 bubble appears to have burst as well, giving the dollar a boost across the board.
Exporter offers are next eyed at the 78.45/50 level.
