USD/JPY: What can’t go down must go up?
USD/JPY has been in the doldrums for weeks except for one very brief flurry which took us below 76.00 very briefly a week ago. We’ve been trying to push to the topside for the past 24-hours or so, a sign perhaps that the specs are getting bored with unproductive positions. It could also be a sign that hedge-funds are covering positions in other markets after taking a beating in gold’s $200 tumble over the past few days.
A move through the 38.2% retracement of the 80.25/75.94 decline at 77.58 would be a very welcome sign for USD longs.