Forex: Yen tumbles, Aussie too? Softbank, flows, stops, window dressing...
FXstreet.com (Barcelona) - All the talk in the market so far seems to point toward massive bids entering the EURJPY around 106.60, leading to inter-correlated appreciation of all Yen-denominated crosses, with the rises occurring 'fast and furious.'
EURJPY has broken above Nov 26 high at 107.13 and after a flash pullback to retest the breakout point, which extended as low as 107.00 round base, now the pair aims to resume the upside momentum by re-challenging 107.30, fresh 7-month high.
One last report coming in suggest Softbank Corp. got busy buying USDJPY as part of a deal to buy US carrier Sprint, a transaction worth over Yen 1.5 trillion.
Funny enough, the Aussie has been falling in sympathy with the Japanese Yen, an occurrence suggesting that present market conditions, rather than being driven by sentiment, are all about flows and stops.
End of the month window dressing is also a catalyst being reported on present volatility, while a probable 25bp rate cut by the RBA next week is also helping to create the mentioned divergence between the Australian Dollar and the Yen. Both currencies continue threatened by its respective central banks's easing views, yet the latter is undoubtedly the worst performer as traders continue pricing into the market the BoJ transition from expansionary to ultra-expansionary monetary policies.
EURJPY has broken above Nov 26 high at 107.13 and after a flash pullback to retest the breakout point, which extended as low as 107.00 round base, now the pair aims to resume the upside momentum by re-challenging 107.30, fresh 7-month high.
One last report coming in suggest Softbank Corp. got busy buying USDJPY as part of a deal to buy US carrier Sprint, a transaction worth over Yen 1.5 trillion.
Funny enough, the Aussie has been falling in sympathy with the Japanese Yen, an occurrence suggesting that present market conditions, rather than being driven by sentiment, are all about flows and stops.
End of the month window dressing is also a catalyst being reported on present volatility, while a probable 25bp rate cut by the RBA next week is also helping to create the mentioned divergence between the Australian Dollar and the Yen. Both currencies continue threatened by its respective central banks's easing views, yet the latter is undoubtedly the worst performer as traders continue pricing into the market the BoJ transition from expansionary to ultra-expansionary monetary policies.
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