The USDJPY shot from 136 to almost 138 on the back of a stronger US dollar but also because BoJ Gov Kuroda indicated that the Japanese economy was picking up (despite some indicators of weakness) and that consumer inflation was at 2%.
This led to a reaffirmation that the BoJ will keep with its path of ultra loose monetary policy, hence the yen weakening.
Today however, the Japanese Minister of Finance commented that the rapid weakness of the Yen was of concern and that the ministry would take appropriate action if necessary.
This hint of potential FX intervention and the retracement of the DXY lead the USDJPY to follow with a retrace back below 137.00.
Look for further downside in the USDJPY with 136.00 as the next key level of support.
This led to a reaffirmation that the BoJ will keep with its path of ultra loose monetary policy, hence the yen weakening.
Today however, the Japanese Minister of Finance commented that the rapid weakness of the Yen was of concern and that the ministry would take appropriate action if necessary.
This hint of potential FX intervention and the retracement of the DXY lead the USDJPY to follow with a retrace back below 137.00.
Look for further downside in the USDJPY with 136.00 as the next key level of support.
