USD/JPY has deepened its pullback after reaching 82.25, failing by 3 pips to take out the 82.28 highs posted late in Asian trade. Selling from the BIS was seen earlier in the day, around the 82.15/20 area.We trade now around 81.70.
In recent session there has been talk of buying by Kampo, the BIS and other semi-official type accounts, so expect more of the same toward 81.50 on pullbacks.
Fundamentally, traders fret that lower commodities will ease inflation fears and could temper US yields.
In the big picture, I still surmise China is holding us in a 80.00/85.00 range as part of a double-no-touch strategy…