JPY Trading Outlook (24-11-2014)

USD/JPY bulls survived the Aso comments (about a too-quick yen depreciation) with minimal damage as the Wednesday post-FOMC lows at 117.35-40 held a couple of attempts to break it lower. All the action was in EURJPY, which goes into the weekend with a tenuous grip on the 200 hma. Stocks rallied hard, including the Nikkei, after the PBOC rate cut but save for AUDJPY the major yen pairs didn’t follow suit. The short yen trade feels tired and we wouldn’t be at all surprised to see some position squaring in to a holiday-shortened week. Through USDJPY 117.30 and/or EURJPY 145.75 will generate some follow through selling.