- AUD/JPY and NZD/JPY were both at top of recent ranges;
- EUR/JPY was exhausted after triggering a barrier at 140.00;
- Many PBs were reporting that the market had gotten ahead of itself with long USD/JPY positioning;
- Those in the chat-room last night would have read some comments (indirect) from the Morgan Stanley chief dealer which picked the market perfectly (MS.. Chief Dealer: Observation – USDJPY has taken a rather rapid 40 point sell off following the 140.00 print in EURJPY – we have fielded numerous questions, all the same – What’s going on? The short term market is long and feels overextended. Don’t rule out 102.20 on the day which I think would be a good buying area.)
We will have these short-term clean-outs but the market feels bullish to me and it’s really keen to buy this pair, so buying big dips for an eventual break above 104 seems like the play to me.