USD/JPY is holding up well today, presently at 98.30 having started out in Europe down around 97.80. The firmness comes despite market chatter overnight in Asia.
The skinny is that there will be some very large sell orders in USD/JPY (repatriation flows) hitting the market tomorrow as the Japanese financial year draws to a close. Ummm interesting. Call me a cynic but could it be a ruse by someone to enable them to pick up some cheap dollars? Guess it’ll all come out in the wash.
For today the USD/JPY pairing will be garnering support from the better tone to US. stocks, as the JPY’s safe haven premium suffers some erosion. And as we’ve mentioned lately the economic fundamental backdrop in Japan remains parlous (all eyes on April 1 Tankan), and the political backdrop uncertain. Two ongoing negatives for the JPY.