USD/JPY has rallied nearly a yen over the last hour or so, spurred by rumors of buying by Kampo, the investment arm of the Japanese postal system. Perhaps those juicy 3.40% 10-year yields in the US are atrracting some Japanese investment.
If nothing else, traders may be a bit reluctant to head into the weekend short of USD/JPY below the 94.00 handle. Loads of trailing stops were triggered on the break back above 94.50 and bids are seen on dips now toward 94.40, dealers report. USD/JPY trades at 94.63.