Forex Flash: Short JPY holdings will not be easily washed out – RBS

As FX Trading Strategist at RBS Greg Gibbs notes: “Short JPY positions remain one of the most held FX position in the market,” he says, while USD/JPY trades last at 93.37, off fresh session and 4-day highs at 93.70, adding: “But the peak short position reported on the IMM was at end December."

"There has been some consolidation of these positions over the last two months," he expands: "The holders of these positions haven’t been shocked by a major correction, but there have been some gyrations to ensure those holding short JPY are playing for bigger picture and will not be easily washed out,” Greg concludes.