Japanese officials are attempting to talk down the high-flying USD/JPY again, arguing moves over recent weeks do not reflect fundamentals but speculative activity. While there’s some merit to the claims, carry trades continue to promote yen weakness, keeping it levitating near multi-decade highs. Sitting in a technical pattern that points the risk of substantial upside ahead, the weak yen headache facing policymakers may soon turn into a full-blown migraine. The background USD/JPY is threatening to break to fresh 33-year highs, surging after the Bank of Japan’s interest rate decision last week. While it delivered its ... (full story)