It was unable to hold rallies despite the news today that Japan was buying a chunk of the ESM offering. Sure, it’s old news, but when USD/JPY was rallying to beat the band over the last month it would take old news and run with it.
Talk of a 2% inflation target being adopted at this month’s BOJ meeting, more bond buying as well as an extra budget all hit the tap today, but USD/JPY was unable to rally. Softer US yields are not helping either.
Looks like a dip below the 10-day average at 86.86, at least, may be needed to clear out some of the longs before the rally can resume.
We head into the close at 87.06, just above session lows.
