One way traffic as JPY crushed against all....>

FOREX: One way traffic as JPY crushed against all others

- An almighty rally in USD/JPY left markets scratching their heads Wednesday,

with only a tepid move in equities (Nikkei futures failed to benefit, for

example) to accompany it. The impulsive move higher in USD/JPY suggests a

distinct shift in stance for the JPY, with the currency de-coupling markedly

other risk assets. Price action potentially suggests markets were caught short

in the pair as Coronavirus concerns were top of mind but as these risks receded,

these short positions needed to be covered, and quickly. Various technical

levels were taken out on the bullish break higher, which saw USD/JPY hit the

best levels since May last year.

- Elsewhere, EUR circled lower still. EUR/USD has now traded lower lows for 13

consecutive sessions - the longest losing streak since 2015. Multi-decade

trendline support drawn from the 2000 low is now in view, kicking in at 1.0748.

Friday's prelim PMI data for Europe becomes critical at these levels. 

- Thursday sees Australian jobs data, China's loan prime rates released, UK

retail sales and weekly US jobless claims. Fed's Barkin is also due to speak.