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USD/JPY slumps below 108.50 as risk appetite worsens

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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