July 12, 2024 13:16 GMT
JPY: Another Sharp Move Lower for USDJPY, Speculation of Further Intervention
JPY
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- Monitoring renewed sharp weakness for USDJPY, below 158.00 in recent trade.
- The pair had been trading around 158.75 before the sudden and significant drop, with the pair printing as low as 157.38 in price action very similar to the aftermath of the US data on Thursday.
- Asa reminder, Japan likely stepped into currency markets to prop up yen on Thursday, according to a Bloomberg analysis of central bank accounts. Scale of intervention was probably around ¥3.5 trillion ($22 billion), based on a comparison of Bank of Japan accounts and money broker forecasts. BOJ forecast its current account will probably fall ¥3.2 trillion due to government fiscal factors on next business day of Tuesday.
- Reversal signals on the chart pointing to an initial downside target of 156.83, a Fibonacci retracement.
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