SocGen have the answer
They say that there was a wall of corporate selling yesterday but they see the risk of a further squeeze higher remaining.
The also have a level they fancy buying USDJPY into.
"USD/JPY has been following real yields, and does look increasingly like a buy closer to 105.
We just can't see the justification for US real yields to fall all that much further, and stability around here may be all that is needed to get USD/JPY trending back up within the current trading range."
We're definitely seeing cable struggling to hold above 1.2800 but more importantly, the dip buying remains strong and the main support line at 1.2770 is holding. As Greg's just noted, the quid has run up to a new day's high but is struggling to take on yesterday's high. If there is large corp selling interest up here, it's winning out but the buyers keep chipping away at it. At some point something will give.
eFX News with the snippet from SocGen. Check them out here.
