FXStreet (Guatemala) – Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that the Yen is trading around levels last seen in early November following Wednesday’s remarkable 1.2% rally, the largest one day gain since September 1st.
Key Quotes:
“Wednesday’s rally underscores JPY’s sensitivity to the broader market tone in an environment that appears to be currently dominated by technicals and positioning. CFTC data as of December 1 detailed a JPY net short position of $7.6bn, leaving JPY bears vulnerable to a squeeze.
We note that options prices suggest a continued demand for protection against downside risk in USD/JPY (JPY gains), with an acceleration in the month-long move accelerating over the past four sessions.”
(Market News Provided by FXstreet)