That is wanting like positioning flows forward of the Fed and BOJ, greater than anything for those who ask me. There was a little bit of a pop yesterday as effectively amid mild buying and selling to 141.70 earlier than a fast retreat to 141.20 once more. That’s now adopted by an additional decline to a low of 140.24 earlier, and we’re simply off that now.

The draw back transfer additionally gained some traction after a fall beneath the 100-hour shifting common (pink line) earlier. As such, that opens up room to maneuver in the direction of 140.00 subsequent probably as effectively.

As a lot as we’re seeing yen bulls get their hopes squandered forward of the BOJ choice on Friday, there’s nonetheless an out of doors threat of the central financial institution stunning. And as talked about right here, that might be the most important shock positively this week if it had been to occur.

To date immediately, the drop right here continues to be suggestive of a extra combined greenback temper. EUR/USD is up barely by 0.15% to 1.1070 however GBP/USD is down 0.05% to 1.2893. In the meantime, the commodity currencies are additionally holding decrease with USD/CAD inching simply above 1.3200 and AUD/USD nonetheless down 0.5% to 0.6755 for the time being.