Broad dollar profit taking has sent USD/JPY to a fresh session low of 120.21. Progress is slow as standing bids soak up steady dollar supply. Price action has turned a little corrective after USD/JPY struggles to reassert itself on the topside despite the healthy US retail sales data.
Speculative account selling picked up after some decent dollar buying ran into quasi-official selling above 120.50. A long weekend in the US and waning upside momentum should encourage a small offered tone into the London close. Fresh dollar buyers may be cautious given the "semi-official" selling toward the highs.
However, there is no reason to believe there is anything unusual in this interest. Japanese selling of treasuries was prevalent yesterday and as spot extends gains we would expect to see ongoing interest as Asian accounts take advantage of considerable currency returns.
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