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USD/JPY en-route to 118.50, not long until 120.00?

FXStreet (Bali) - There continues to be no Yen buying interest in Asia, with the currency reaching fresh 7-year lows against the US Dollar at 118.27 yens, as fear of missing the trend exceeds any technical rational.

Following a post-Tokyo Gotobi fix retracement towards 118.00 round number, the dip was quickly bought up leveraged players, eyeing 118.50 as next intraday target ahead of 119.00, with the big 120.00 - large stops above -, which varies investment banks were calling as year-end forecast, looking within reach even this week at the current bullish pace.

Note the relentless bidding in USDJPY is not really coming with new highs printed in Nikkei, which suggests something bigger than just QQE2 or GPIF changes might be driving prices incessantly higher. It may be that market is starting to fear a Japanese currency crisis with BoJ QQE seen as perpetual to support the potential for Abenomics' failed experiment? An element of psychology though, that is, fear of missing intraday yen bear moves far exceeding any tech rationale is obliviously at play as well, which seems to be the main driver for now.

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