MARKET TALK: USD/JPY Rally Unlikely To Be Speculative -RBCCM

It is less easy to dismiss the current USD/JPY rally as speculative compared with the rally seen in late January, which was accompanied by a similar spike in risk-reversals, according to RBC Capital Markets. It notes this is not the case this time around, which suggests the usual leveraged accounts are less likely to be behind the move. The source of current JPY weakness is hard to tie down, but semi-official bids into the Japanese financial year-end [at the end of March] cannot be ruled out. USD/JPY trades at 78.72, from the day's fresh 15-week high of 78.83