The BOJ rate decision will be announced on Wednesday and the market is expecting no change in policy or tone of statement.
Of more relevance is the positioning in the market. There has been one very large buyer between 101.20/50 over the last few weeks which is gradually being filled. Now we have reportedly ‘massive’ stops building below 101.15 all way down through 100.50. In these types of direction-less markets (like we have seen in USD/JPY over recent times) big stops always get done.
EUR/JPY has broken back below 140 and after a massive 50 big figure up-move from those record lows, surely a retracement back towards low 130’s isn’t out of the question?
I’m not trading this pair at the moment but if it starts to break lower, I may look for intraday selling opportunities as it could well over-extend once the range-trading psyche breaks.
