Epic battle going on at 111.50/60
USD/JPY is the place to watch in the currency market right now. It's the financial market's Battle of the Somme.
There are continued signs of strain in the dollar-funding market but the Fed is throwing everything at it. At some point, the market should get back to focusing on fundamentals. Normally that would put a bid into the yen but these are unusual times.
They're also times to fall back onto the technicals. The hourly chart shows just how critical the 111.50 level is. If we get a continued jump in risk assets, it can break out. I don't think a funding squeeze can get it above the Feb high of 112.20 because that would come with a another leg down in equities and a rally in bonds.
