NAB on USD/JPY: En-Route to 105, until the BOJ shows its Hand, ‘purely tactical’ trading

eFX with a piece from NAB on USD/JPY:
The lack of an aggressive enhancement in easing measures from the BoJ at its 29 July policy meeting dragged USD/JPY from a ¥105 handle to ¥100.68 over the course of four days. Since then and until Yellen’s Jackson Hole’s speech on Friday, USD/JPY was mostly contained within a ¥100-¥102 range with price action suggesting a sustained move sub- ¥100 was on the cards. Late on Friday Yellen left the door open for a September hike while still remaining non-committal and data dependent. Reaction to her speech and follow-up remarks from Vice Chair Fisher boosted the big dollar and helped USD/JPY briefly trade above ¥102 this morning (see chart 1).