In our latest FX Monthly Cease-fire broken we revised our JPY forecasts lower due to stronger than expected political and monetary policy pressures in Japan. However with the market already at an extreme short JPY position, we think a circuit-breaker could be tripped this week seeing at least a short-term USD/JPY correction towards 116.50. While the magnitude of such a correction may seem small given the pace of recent USD/JPY gains, we note many buyers are unlikely to wait too long to add to positions given uncertainty surrounding December the elections. As such after this correction, JPY selling should resume ... (full story)