USD/JPY: Consolidating Near 110?

The trading week began in an erratic mood, with commodities and emerging market shares falling, and the Dollar taking-back some recent losses. Some market watchers saw yesterday's volatile moves as a sign of global risk aversion that has investors fleeing to safer investment vehicles, namely European bonds and the Dollar. A less grand interpretation might view Monday's trading as a natural cooling-off in the red hot metals markets combined with some run-of-the-mill profit-taking for those who have been short the Dollar in recent days. Thus far on Tuesday, matters seem to have quieted substantially in spite of a sizeable amount of new data. Read More....