USD/JPY is 30 pips off its lows despite fresh lows in the S&P 500. That’s a good sign that dip-buyers aren’t going to be shaken out by a bit of risk aversion.
Despite all the excitement about yen weakness, the trade isn’t especially crowded. The latest CFTC Commitments of Traders data showed a net-short of 94K in the yen which is right around the average over the past 6 months.
The latest CFTC data will be released today at 3:30 pm ET.