USD/JPY fell on Tuesday as word got out that the “Troika” was going to wait until October to head back to Athens in order to discuss a bailout. This could suggest that the process is going even slower than expected, and could spell trouble for the world’s financial markets. This leads to traders trying to find “safe haven” trades, and the Yen is one of the favorites. However, with the Bank of Japan so unhappy about current levels in this pair, we feel it is far too dangerous to short this pair at this level. The pair can only be bought at this point, and quite frankly we aren’t seeing any reason to do that either.
Written by FX Empire