Quiet time

While we have had a combination of risk on and risk adverse trades, I'm still undecided on the direction. If one were to look at the overall strength in government bonds and Japanese Yen, I would be tipped in the bearish direction. Equities are hanging around at this level not giving up much ground either.

USD/JPY with yen strengthening and usd weakening

Bonds still resilient the last few days

Note the charts are in a 30 minute and day intervals top and bottom respectively.

Something tells me money mangers have put their money back in not wanting to miss the boat. But we all know the majority of money managers don't beat the market. Regardless of money being put to work by managers, the market will go where it wants to go.

The USD/JPY weakness is probably the most concerning event at the moment as the Japanese Yen reaching new highs does not inspire confidence for risk assets. If you are a trader that believes once the yen breaks to new highs against the dollar, it will put continued upward pressure, then this is the next target trade now that the EUR/USD has already quite handily breached the 1.30 mark.