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.

  1. The BOJ is more optimistic, officials upgraded their economic assessment, so more QE is less likely.
  2. Low energy prices are excellent for Japan's terms of trade.
  3. Japanese corporate earnings and wages are showing some improvement (largely due to the weak yen).
  4. Japanese fiscal year end repatriation flows.
  5. Bearish views on stocks, Q1 earnings
  6. Anticipation of a soft patch in the US economy. Some Q1 estimates as low as +0.2%.
  7. The technical reversal/double-top at 122.00.

USDJPY daily