USD/JPY has fallen just a shade more than 61.8% of the overnight rebound begun from the 88.01 level up to 89.40. Exporter offers were seen near the top of the days range while a few notable buyers helped ramp it toward those highs around 89.40.Selling from those protecting 88.00 barriers was rumored as well, potentially reloading for fresh defense to come.
The Saudi Arabian Monetary Authority was reputedly the buyer off the lows, helping spark rumors that the BOJ may have entered the market while follow-up buying by a US money center bank helped drive the pair to the highs.
Since then it has been a slow bleed for USD/JPY. Lower US yields are weighing on the buck (10-year notes are down to 3.19%). We dipped briefly below the 88.52 level, the 61.8% retracement of 88.01/89.40. Support now rests at 88.35/40 while protection of 88.00 barriers remains in play. We trade now at 88.57.