Despite the lack of proof that Japanese investors are moving funds abroad (Thursday's Ministry of Finance data showed another week of foreign security selling - of ¥548.2 billlion yen or $5.6bn), the market believes that these flows will eventually materialize and players are content to sell the yen, both versus the dollar and on the crosses. Moving funds abroad from Japan would require selling the Japanese currency in exchange for the currency of the invesement destination country.
"Nobody wants to sell dollar-yen," one trader says. "You buy the dip (in dollar/yen) and you make money; when the day comes that you buy the dip and you don't make money, then you can talk about a correction," he says.
Indeed, despite this week's slide to 95.80 (Tuesday in Asia), most market players still look for a move back to 100 and beyond.
Market News International & WorldWideMarkets