USD/JPY continues retracement, now down 200 pips

Till at the moment, USD/JPY had rallied day-after-day this week in spectacular style.

Nevertheless after some robust discuss from the finance minister at the moment, there may be some heavy promoting. The pair is now down 201 pips to 154.23 because it’s now minimize by way of Wednesday’s low.

I hesitate to place an excessive amount of of the blame on the drop on the finance minister however there may very well be bets on intervention occurring right here, or revenue taking.

What makes this a tough transfer is that it isn’t coming with a notable drop in yields. Treasuries are again to flat on the day however there may be hardly something taking place there that may drive a USD/JPY bid.

In the meantime, less-dovish feedback from Powell and different Fed officers argue for getting the greenback.

Total, I am hesitant to chase this drop and extra prone to look to purchase a dip as a result of nothing has modified. The larger drawback for USD/JPY may very well be fairness markets because the Trump sugar-high fades.

This text was written by Adam Button at www.ubaidahsan.com.



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