USD/JPY shows the faintest sign of a pulse, edging up to 76.73 from lows of 76.59. Traders expect the rallies to be quite limited near-term given the seasonally strong nature of the JPY this time of year.
Why is the JPY strong this time of year? Many US Treasury issues mature or pay coupons today, August 15. Expect some of that flow to have been hedged already but some will be transacted through the balance of August, traders say.
76.25 barriers are rumored below the market, a level that corresponds with the March 17 all-time USD/JPYlow