USD/JPY down 30 pips in past hour
The US dollar is under increasing pressure after a week of solid gains. USD/JPY fell 30 pips in the past hour and is now down 80 pips on the day to 108.45, about 5 pips below the European low.
USD/JPY failed ahead of the 61.8% retracement of the post-BOJ drop; it's a level that I highlighted yesterday .
The yen is a bit of a paradox. One of the drivers of the big yen rally so far this week was intervention talk. But the thing about intervention is that it won't happen unless USD/JPY is falling. So the rebound makes intervention less likely and, suddenly, there's no longer a reason to buy USD/JPY.
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