FX intervention by Russia’s central bank has helped calm nerves in emerging markets and given a boost in USD/JPY to as high as 102.78.
USD/JPY has been impressive in the past week. Despite massive long speculative positions, a rout in risk and even a breakdown in bond yields yesterday the pair held support in the 102.00-101.77 zone.
The near-term topside could be contained by rumors of semi-official sales up to 102.85 and more at 103.00 but as long as USD/JPY can hold today’s gains so far, it’s a big win for the bulls.