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Forex pairs in this Article » USD/JPY
FXstreet.com (Bali) - USD/JPY continues is a steady course en route to retest the next cluster of offers between 102.80/103.00.

Market sources report Japanese importers as solid buyers since yesterday's dip sub 102.00, which saw some Mrs. Watanabe's stop-losses go off in iliquid market conditions before a recovery in the rate.

Risk off eases

The ease of any immediate Chinese liquidity crunch ahead of the Lunar new year - money market rates well contained after PBoC intervention last week - has resulted in a near term relief, with players long Yens taking some profits off the table.

The recent JPY strength has also served macro players to reinstate longs, despite talk has it that some big volumes above 102.70 suggest some of the large macros are using rallies to reduce longs too.

USD/JPY technicals

On the topside, technically speaking, Jim Langlands, Founder at FXCharts, notes: "The high at 102.90 and 103.00 will see good sellers, as the market still seems overly short of Yen positions and will be worried about the future outlook for the emerging markets if the Fed does increase the rate of tapering and will thus be looking for an opportunity to cut positions into any sign of Yen weakness."
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