By: Eamonn Sheridan

The orderboard for USD/JPY is here. I wanted to update it a little: Stops below 92.30 (be aware, plenty of bids layered down there too). More stops below 93.00. The earlier post - if you don't want to look it up: USD/JPY is seemingly captive to the machinations over the BOJ appointments and discussions in Tokyo over further easing options. The market is very short yen (i.e. very long the XXX/JPY cross – insert almost whatever you like for the XXX). It is, thus, vulnerable to shocks that would prompt yen buying. For example, the delay in the announcement of nominees for the three vacancies at the BOJ come March 19 and the will we/wont we discussions on the option of buying foreign bonds. But, hold on a minute, with the market seemingly positioned heavily one way and confusing news hitting the wires … why has the sell-off in USD/JPY been so limited? Good question. There is still big buying around, to offset what is big selling. It will pay to be nimble in this market and to stay in close touch with developments. On the topside Offers 94.50 and ahead of here Big offers 94.15/25, trader stops above Offers at 93.60/70 – dealer talk has it there is a large Asian central bank selling here On the downside: There are bids layered lower from 93.20/30 92.90/93.05 holds large bids, and again layered lower from here