The JPY has made fresh trend lows against some “risk currencies” today, with AUD-JPY, for instance, making a near four-week peak of 78.23. EUR-JPY, meanwhile, took out its high from last week and has logged a 25-day high of 135.65. Cross flows have led USD-JPY, which has been lifted back above the 95.00 level, but the pair remains comfortably below last week’s high and upside progress is a comparative struggle with the dollar itself heavy against most other currencies. The launch of new Toshin funds in Japan, yield-seeking foreign investment funds, will help persuade many interbank market participants to remain bearish of the yen, along with the backdrop of risk appetite. We heard that there is talk of there likely being strong Toshin-related yen selling at the London fix today. USD-JPY but stops are reported from 95.30. Main risk to the current status quo would be an event that might prompt a sudden reversion back toward risk aversion, which could spark short-but-sharp gains in the JPY given that the market is running a fairly hefty net short exposure.