Published at 13:21 (GMT) 30 Jul

USDJPY

The month-end is upon us and the price action so far has failed to live up to expectations. The USD purge that was suppose to take place as a result of hedge adjustments is now in jeopardy due to the relatively dramatic equity decline. USD/JPY is playing according to script, equities down, risk appetite shrinks, JPY demand climbs, no matter what Japanese official say or do. The intraday low on USD/JPY of 85.95 is the lowest trade since 30 Nov 2009 when the low was 85.83. The market, now that the 85.00 level has traded, is expecting to find bids in USD/JPY from the usual names, even after Japanese official comments talked about using monetary policy to stem the JPY's advance. M.B.