USD/JPY breaks January highs, runs the stops

USD/JPY shorts are heading for the exits while fast money is piling in at the highs. We’ve hit 78.41, so far.

Exporter selling is seen at 78.50. I’d be very carefully buying USD/JPY up here. Id’ rather see a close above 78.25/30 for a few days before jumping on board, even if it means paying up for USD/JPY.

Buying on the 78-handle has not been a winner in recent forays and the Japanese fiscal year-end keeps me a reluctant to jump on board given the tendency for repatriation of profits this time of year back to Japan.