It was only a few weeks ago that EUR/JPY fell from 125.00 to 119.00 in a 24 hour period and now we’ve seen a rally from 119.00 to 124.50 in about the same time. We certainly cannot complain about lack of volatility!
The moves by the BOJ were certainly a game-changer and it’s hard to see the market getting bullish on the Yen in a hurry, unless of course positioning gets over-extended too fast. Buying any sort of dips now in USD/JPY looks like the obvious play and we only need to see another session like yesterday and we will be back trading near 100.00. Don’t discount it.