As the world anxiously awaits every word from Kuroda’s lips tonight, it appears liquidity just collapsed in USDJPY as the currency pair just crashed 200 pips instantly on evidently no news headline or catalyst…
so within the last 48 hours, the machines have run all stops from 106.50 to 103.50…freeing up some room for tonight’s shenanigans…
Yen futures give a sense of the volume behind the move…
Zoomed in shows the moves around the big figures…
Bloomberg confirms our suspicions that algorithmic platforms have been partly blamed for the early Asian plummet in spot, according to Asia-based FX traders.
Keyword flagging in platforms is picking up earlier stories reposted at the Asia open, traders say
This, combined with thin liquidity, is causing excessive volatility ahead of BOJ decision: traders
With overnight FX vol near record highs…
We can imagine the sensitivity of options positions (huge decay) and suspect the flush thru 103.50 was triggered by some automated options market-maker.
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