USD/JPY is slowly steadying after the sharp overnight sell-off which saw a low of 96.65 posted. We’re presently back at 97.40. General sentiment today isn’t too bad with US stocks above water and this will be lending support.
Another thing which will also be lending USD/JPY some support, is the likelihood of yen selling flows coming from Japanese investment trusts making foreign currency denominated investments, like the Nomura Securities Fund we mentioned yesterday.
A number of such mutual funds are being launched in the very near-term.