Once again, USDJPY rebounded from the near 100 level, but this currency pair has to overcome 102.50 to free itself from the risk breaking lower. Yesterday’s BoJ quarterly Flow of Funds report suggesting corporate cash levels reaching a record USD2.2trn is a symptom of declining monetary velocity. The decline of monetary velocity explains why the increase of the BoJ's base money has not yet filtered through into broader money supply growth and therefore JPY weakness. Authorities will have to work on increasing monetary velocity to turn around the JPY. There are three important topics when it comes to JPY valuation, ... (full story)