2 different reasons the yen has been rising (hard!)

<p>Greg on the yen:</p><ul><li><a href="https://www.forexlive.com/technical-analysis/usdjpy-continues-it-tumble-to-the-downside-down-over-650-pips-over-the-last-5-days-but-20230712/" target="_blank" rel="follow">USDJPY is down for the 5th consecutive day. Over that time period, the pair has moved over 650 pips. That's a big move in a short period of time.</a></li></ul><p>For sure! A very rapid move indeed. If the yen weakened at such a pace Japanese authorities would be bashing the newwires with jawboning about how such rapid moves are no desirable. But, nope, nothing from them these past days. </p><p>Via Deutsche Bank:</p><ul><li>The yen has drawn support on the back of rising speculation that the
Bank of Japan (BOJ) could tweak its YCC policy at its meeting later in
the month.</li></ul><p>RBC, on the other hand disagree, saying the gains in yen are likely due to the unwinding of extended shorts, with IMM positions long USD/JPY hitting their most extended in 5 years. RBS says its this, not a potential Bank of Japan policy tweak behind the recent bounce for the yen.</p><p>I strongly disagree with RBC. For sure, the stretched positioning has played a role, but the catalyst is as DB points out, speculation of BOJ tweak at the July meeting. I wrote about this a couple of weeks ago:</p><ul><li><a href="https://www.forexlive.com/centralbank/heads-up-folks-the-july-27-28-bank-of-japan-meeting-is-going-to-be-huge-ycc-pivot-20230626/" target="_self" rel="follow">Heads up folks, the July (27, 28) Bank of Japan meeting is going to be huge – YCC pivot</a></li><li><a href="https://www.forexlive.com/centralbank/more-from-the-boj-june-meeting-summary-one-member-called-for-early-revision-of-ycc-policy-20230626/" target="_self" rel="follow">More from the BOJ June meeting summary: One member called for early revision of YCC policy</a></li><li><a href="https://www.forexlive.com/centralbank/usdjpy-lower-after-the-boj-says-cpi-may-not-drop-below-2-20230626/" target="_self" rel="follow">USD/JPY lower after the BOJ says CPI may not drop below 2%</a></li><li><a href="https://www.forexlive.com/centralbank/boj-says-strong-chance-cpi-will-moderate-but-not-to-back-below-2-by-mid-fiscal-year-20230626/" target="_self" rel="follow">BOJ says strong chance CPI will moderate, but not to back below 2% by mid fiscal year</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.