Yen fails as a safe haven
The rally in USD/JPY in the past 10 days was not something many people saw coming. The yen is the traditional safe haven and it fulfilled that role at the start of the month but as things got really bad in the past week, the demand shifted to the US dollar, in part due to a funding crunch.
The latest buy signal was the break of the 61.8% retracement of the Feb/March fall and rise to 110.84. It's been a mammoth rally today, up 275 pips to 110.83. Technically, it's tough to see the momentum stalling until we get close to the Feb high of 112.23 but the technicals haven't exactly been your best friend in this wild trade.
