It's not just a story of USD demand this morning 29 Jan
USDJPY also falling to 108.64 as GBPJPY retreats to test 153.00 and that's triggering further falls in GBPUSD to 1.4063 after breaking down through decent support/demand at 1.4080-4100. Next line of support/bids at 1.4050.
I've said a few times before on these pages that GBPJPY is a favoured hedge-fund tool and I would expect to hear of some decent size sell orders now executed to make the most of any stop-loss triggered momentum. Can't rule them jobbing some profit back in though as these funds are now far more active in the day-to-day markets than they ever were before.
Add to the mix some early yen demand for year-end repatriation by Japanese companies. Nothing confirmed but as April approaches it's not an unreasonable assumption to make. In fact we've probably been seeing it playing out over the past few weeks.
I've been bearish on these pairs for a while now as regular readers will know and see no reason to change my mind.EURGBP demand a per my earlier post also helping to provide further GBP pressure.
EURJPY down to 134.80 with EURUSD falling back below 1.2400 on the selling pressure but bids nearby on both. AUDJPY down to 87.94, CHFJPY down to 116.10 as yen demand plays out across the board.
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