Japanese exporter offers are rumored on rebounds to the 90.00 level. We would not be surprised if some larger stop-losses are above that level as well. A retest of the 87.10 trend low was seen as a lay-up no more than 48 hours ago and an eventual 80.00 test a high probability event to many.
Now, all of a sudden, US rates are spiking and the market is being forced to re-think. As 10-year yields approach 3.40% after falling to 3.17% just yesterday, traders are wary about USD/JPY shorts. We trade at 89.80 after reaching 89.87 highs.