US: Durable Good Orders fell 5.2% in January

According to Research Analyst Gareth Berry at UBS, “The prospect of a more accommodative Bank of Japan is certainly a good reason to position for further USD/JPY upside, though it is not the only one. The FX flow picture has started to change too in ways that are potentially more far-reaching and long lasting. Deep structural changes are taking place in Japan's real economy, which has disrupted the prevailing balance between supply and demand in the foreign exchange market. Corporates, as a community, had been persistent net sellers of USD/JPY for years, but then suddenly switched sides two years ago. We have seen persistent net yen selling since.”