The market sees virtually no chance of any RBA policy shift today and yesterday’s informal inflation data will have reinforced that view.
No sign of hedge funds and CTAs chasing the JPY crosses higher so if their buying starts to peter out, then we may see some consolidation in EUR/JPY sub-120 and AUD/JPY sub-88. The new Japanese financial year might also attract some fresh corporate activity and we may get a sense of this at the Tokyo fix.
Good luck today.
