Overbought signals are slowly being unwound and with the general election looming, I would expect Yen shorts (reportedly at extreme levels) to continue covering as the week progresses. Selling rallies back towards 107.00 looks like the obvious risk-reward play, in expectation of a fall later in the week towards 105.30 at a minimum. On the day I’d expect 105.90/106.90 to cover most eventualities.
