Japanese exporters halt yen-buying - Nikkei Asian Review
The Nikkei Asian Review reports that Japanese exporters have cut yen buying because of the post-BOJ jump last week.
The story is what may be hitting USD/JPY now. The pair has dropped 30 pips in a flash and took out 104.00.
The idea is that if the pair is falling despite a lack of buying from Japanese companies, then there is selling pressure building in the pipelines and any bounces will be hit hard as they return.
'Japanese exporters have curtailed yen-buying following the currency's swift appreciation last week, making it likely that their pent-up demand will prevent the yen's weakening down the road," the Nikkei Asian Review reports.
The Review says companies aren't just frustrated with yen strength, they're cautious because of the Fed and Brexit vote."Exporter companies normally set a target rate for yen purchases for each quarter. "Yen-buying for the April-June period has generally run its course," Seiichi Tanaka of Mizuho Bank said in the article, but advance purchases for July and beyond -- which are normally seen by now -- have not started.