USD/JPY bids from the 115.40 level are seen very firm with both Japanese and overseas funds tipped to be buying from this level. Japanese importers have not been able to buy at current levels since mid-August. The beginning of September did see a brief dip towards current levels but the bounce was fast and many unable to take advantage.
Japanese institutional investors also look to be more active here with a large semi-governmental name reported to have been buying Friday in the low-116 area. Dealers say more buys here would not surprise. This may account for the thick bids at 115.40 earlier this morning. Overseas funds are also seen on the bid, looking to buy back USD shorts ahead of their fiscal year-end.
Such position adjustments often take place towards the end of each November, and may not be limited to just USD/JPY. Topside resistance is still eyed towards 116.00 where plenty of offers remain. USD/JPY currently trades 115.56/59.
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