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USD/JPY Volume Surge as Rate Corrects Off Highs

JPY
  • Quick snap lower for USD/JPY, erasing day's gains (briefly) to touch lows of 149.96 before stabilising - very similar move to Oct17. Solid spike in JPY futures volumes on that move: just over 10k contracts across Dec-23 futures traded inside one minute, that's a cash equivalent of ~$875mln, but is of much smaller magnitude relative to the volume spike back on Oct17. Trade on that day saw over twice the volume cross over the same period.
  • Worth recalling Kanda confirmed back on Oct19 that "it's more normal not to confirm FX intervention". We won't get any official confirmation on market intervention this month until Tuesday next week - the last working day of October when the BoJ release official FX reserves data.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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