USD/JPY flows: Light work of running for 155

USD/JPY making light work of the reset back towards the deeper support at 155~. The pair has the tendency to go up the stairs and down the elevator of course and making a dash for the deeper double lows at 152 wouldn’t be that out of character at this rate even, if the run for the exit maintains steam. While large moves always bring intervention to mind, its also been on the radar of late out of G20, and some vague checking talk too, it seems like action is pre-emptive rather than driven at this point and all very orderly rather than impulsive.  

Sep looks a done deal for the BoJ but the focus is really turning more then to how ‘nimble’ things are from there with around 60% of another hike currently priced in to Dec now.

With yields up where they are locally and with much attention also, for example, on the unusual GPIF Aug holiday meeting, attention remains not just on rate spreads, and Japan’s move up the low interest rates pecking order, but also repatriation / reallocation flows .