USD/JPY is closing out the day in Europe pretty much where we came in, presently at 98.20. The earlier rally just didn’t have enough momentum to break through aforementioned sell orders lined up at 98.50 up thru 98.75, with a high for the session being registered at 98.64.
Sentiment, if anything, is very marginally bullish at present. There seems to be quite alot of talk of a test of the 100.00 level being seen in the near future. From a fundamental standpoint, things look pretty well balanced. On the one side, we probably have some year end JPY demand still to go through, and on the other we have the truly awful economic backdrop in Japan. Also supporting the JPY bearish scenario is ongoing speculation (not overly strong mind you) the BOJ might just be inclined to follow the SNB lead and intervene ot weaken their currency. There is also talk of decent buying interest down at 97.50, which should help the JPY bears.
