It looks like a percentage of the market wants to reload by selling yen and going long dollars and euros. These are the same individuals who had off loaded similar positions ahead of the G20 meeting. Their change of heart has followed the news of the G20 communiqué, which does not take a strong stance on Japan’s yen weakening policies. Also fueling their desires to short yen again was Friday’s strong US Empire manufacturing report. From a technical perspective, the market is encroaching on large option barriers right hand-side for USD/JPY (94 &94.50).
Is there anything that can stop this selling of yen? Perhaps the knee-jerk reaction will come when the next new Governor of the Bank of Japan is appointed. If ex-MoF and BoJ official Muto becomes the chosen one, the market will initially see him as being less in favor of easing, allowing the market to buy back some of this yen. In the end it really does not matter who will be appointed Governor. Everyone eventually will have to fall in line with Abenomics.
- Yen in G–20′s Firing Line 
- NZ Beats Australia 
- South Korean Won Heads for Best Week in 14 Months 
- Yen Moves Back to 92.50 Before G–20 Officials Meet in Moscow 
- G20 to discuss Yen in Moscow meeting 
- Another Billion Profit for Soro’s bet on BOJ 
- Bank of Japan Leaves Policy Unchanged Despite Pressure 
- Japan’s Economy Shrank in Q4 – Justification for Abenomics 
- Economists expects Japanese GDP to grow in Q4 2012 
- Yen Gains as G–7 Officials Offer Mixed Signals 
- G–7 Said to Be Concerned About Excess Yen Moves 
- RBA Rate-Cut Bets has Australian Dollar Maintaining its Slide 
- Japan Stock Market Rose 7 Percent Last Month Thanks to PM Abe 
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