USD/JPY climbed 134 pips on the day and briefly broke above 155.00. The move unwinds part of the retracement that followed the latest round of currency intervention, and traders say yen short positions have largely cleared out.
USD/JPY jumped 134 pips and pushed briefly above 155.00 as the pair extended its rebound. The advance reverses part of the pullback that followed the latest intervention and short-covering round.
Yen shorts have largely cleared out
Positioning data shows yen short bets have largely unwound, leaving little left to squeeze.
Bessent's "house" comment meets a limited hand
According to Investinglive: "he was the 'house' now", US Treasury Secretary Scott Bessent dared markets to short him and said he held asymmetric information. But he only runs the US side of the equation, and even there he has little control over the long end of the curve.
The fiscal side has been out of control for years, while the bigger problem sits with the military side. Trump is pleading with Ukraine not to strike Russian refineries, and Iran-backed groups have strangled the Middle Eastern oil market and shut down US bases in the region. With that, the house is largely powerless to halt the swings in the market.
Source: Investinglive.com
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