I had a question in the comments about what has driven USD/JPY higher in the past hour or so, so I just thought I would post it up.
- There has been EUR/JPY buying in the market (I’ve heard Asian central banks prominent in the buying – make of that what you will) helping to lift USD/JPY.
- Buying under 87.00 this morning, notably from Japanese importers
- I also think the market has been quick to want to short USD/JPY, looking for some deeper retracement of the big run up over the Christmas/New Year period – so there has been forced short-covering on this move higher in USD/JPY this morning too.
