USD/JPY is the ultimate game of musical chairs. Traders sell, sell, sell and then cover quick once it stops going down for fear of the BOJ/MOF…On the topside, they are just as quick to pitch longs. Once the momentum stalls they head to the sidelines right quick…
So here we are, after two conflicting pieces of US data, right back where we began, in the 84.30s…astounding.
It should be noted that once the selling is exhausted intraday, there is probably some value in being long USD/JPY given the rise in US yields today. US 10-year notes are still higher in yield, at 2.71%, though off their highest levels.
