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USD/JPY Falls Sharply In Late NY Trade, Fueling Fresh Intervention Speculation

JPY

USD/JPY has fallen sharply in the latter stages of Wednesday NY trade. From around 157.00 we got close to 153.00, although this move took around 1 hour to fully play out. The intra-day chart is presented below. We have stabilized in recent dealings.

  • This will fuel speculation that another round of intervention by the authorities has taken place.
  • Liquidity would be lighter towards the end of NY trade and ahead of the Asia Pac session. Recall on Monday it was a local Japan holiday, hence lighter liquidity during that session as well when we saw a sharp move lower in the pair.
  • USD sentiment was also softer post the FOMC, which may have also been a factor, but the pull back to 153.00 looks very aggressive compared to earlier price action.

Fig 1: USD/JPY Intra Day Moves

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USD/JPY has fallen sharply in the latter stages of Wednesday NY trade. From around 157.00 we got close to 153.00, although this move took around 1 hour to fully play out. The intra-day chart is presented below. We have stabilized in recent dealings.

  • This will fuel speculation that another round of intervention by the authorities has taken place.
  • Liquidity would be lighter towards the end of NY trade and ahead of the Asia Pac session. Recall on Monday it was a local Japan holiday, hence lighter liquidity during that session as well when we saw a sharp move lower in the pair.
  • USD sentiment was also softer post the FOMC, which may have also been a factor, but the pull back to 153.00 looks very aggressive compared to earlier price action.

Fig 1: USD/JPY Intra Day Moves

Keep reading...Show less