USD/JPY: Trapped In A Range As Interest Elsewhere

The wax and wane dynamics within a confined 50 pips box remain the norm as none the USD nor the JPY experience enough imbalances as both sold hard on the risk appetite tone.

The positive trend in equities acts as a source of demand, but this continues to be counterbalanced by the negative tendencies in the DXY and US yields, hence the range.

The majority of technical measures are still negative, while the intermarket flows have turned slightly more constructive as US yields recover as part of the ‘true risk on’ microflows.

Amid the lack of clear catalysts, other than a Brexit shocker with broad-based ripple effects, it looks like engaging in buy/sell side activity at the edges for rotations is a sensible strategy.