Interesting information filtering through from some of the bigger players is that USD/JPY turnover in the spot market has been falling significantly and consistently over the last year. They attribute some of this to changes in tax rules regarding the repatriation of overseas assets. In addition to this, with Japanese exports falling by up to 30%, the demand for foreign exchange services is also dwindling quickly.
The obvious market effect of this is that volatility will increase and we can expect to see sharper moves once major market milestones are overcome.
