Flash: USD/JPY is extending higher – TD Securities

FXstreet.com (Barcelona) - Research team at TD Securities said the Iranian deal was the biggest global development over the weekend and while petro currencies (like the NOK and CAD) have clearly been weighed by lower oil prices, they said the JPY too is underperforming on reduced safe-haven demand".

“Asian geopolitical tensions may have risen modestly with China’s move on the Daiyou/Senkaku islands, but the focus on Iran has been the dominant focus for markets”.

“On the charts, JPY softness appears to have more room to move against its key peers, however, we do note that speculative short JPY positioning is quite extreme now (as per Friday’s CFTC report) and vulnerable to a short squeeze”.