USD threatening to fall below its 20-day moving average against the yen - BBH

Analysts at BBH note that the US dollar is threatening to fall below its 20-day moving average against the yen for the first time since the US election. 

Key Quotes

“It is found a little below JPY116.20 today, which also roughly corresponds to the 61.8% retracement of the gains since the Fed hike.  The yen appears sensitive to the falling equities and Treasury yields.  It is also a question of positioning.  In the futures market, speculators have aggressively amassed a large gross short position over the last few weeks, suggestive of other trend followers and momentum players.    A break of JPY116.00 could force other late-dollar longs out and spur a move toward JPY115.25-JPY115.50.”