USD/JPY is the only pair which has been able to generate any decent amount of momentum in recent weeks, and even there it seems to be waning. All of the other major pairs seem to get exhausted by a 200 pip move and then need a rest for a few days. I’m sure all the range traders out there are happy as.
Friday is usually risk-off in Asia but that assumes that the traders in the region have been putting some risk on in recent weeks. Jamie made an excellent point earlier on USD/JPY, so perhaps this is where we might see some positional unwinding? Any falls are likely to be relatively orderly as Asian Sovereigns have been showing an interest to buy-big-dips in recent times.
Good luck today and TGIF.
