Lots of chatter about selling USD/JPY.
It's been awhile since I've heard so much talk about buying the yen. I don't like fighting the trend higher for the US dollar but here's the case shorts are making for selling USD/JPY.
- The BOJ is more optimistic, officials upgraded their economic assessment, so more QE is less likely.
- Low energy prices are excellent for Japan's terms of trade.
- Japanese corporate earnings and wages are showing some improvement (largely due to the weak yen).
- Japanese fiscal year end repatriation flows.
- Bearish views on stocks, Q1 earnings
- Anticipation of a soft patch in the US economy. Some Q1 estimates as low as +0.2%.
- The technical reversal/double-top at 122.00.
USDJPY daily