Japanese investors are propping up JPY pairs

Japanese investors still have cash to burn

Alongside our institutional Forex orders published each day on the ForexFlow platform, we also get some inside chatter on who’s doing what business. For the last week or so, we’ve known that Japanese investors have been on the bid in JPY pairs alongside some other usual suspects. These folks are splashing the spring cash in the new financial year which can run for a few weeks in April. It’s this cash going to work that’s put a spring in the step of yen pairs and kept them on the bid. Insurance firms have been seen in USDJPY while others have been in the crosses.

We know roughly at what levels they’re active but they’re also facing some headwinds from Japanese exporters who are happy to hit the rallies. That gives us the key ranges to watch intraday.

What we’re looking for now is whether these investors will push the price to any meaningful levels that can bring us trading opportunities, or whether the business peters out and we start dropping back again. In the absence of any big trade news or central bank action/language changes, these flows can bring some good opportunities. In our trading room, we are all about gathering the best information we can on what’s happening in markets and then formulating that into actionable trades, and this is one situation we’ll be watching closely.