FXStreet (Bali) – USD/JPY is down more than 1% with a key bearish technical breakout currently underway, after a violation of both 124.50/70 daily point of control and 124.00 psychological round number, hitting its lowest at 123.85, so far.
BoJ Kuroda talks up the Yen, will it last?
The massive USD sell-off came on the back of unexpected comments from BoJ Kuroda, talking up the Yen, by saying that real effective exchange rate shows that yen is weak, while also saying that yen may not weaken much further on real effective exchange rate basis.
AUD has startling recovery, fueled by USD/JPY
Against the Australian Dollar, while RBA Governor Stevens did strike a dovish tone once again, noting that he remains open to the possibility of further policy easing, the AUD/USD has now recovered its RBA-led losses in its entirety, currently trading neat 0.77 after a low printed mid Asian session at 0.7635.
BoJ Kuroda headlines worth 200 points?
As a reminder, BOJ Kuroda comments are not too dissimilar from those made when USD/JPY was trading circa 119-120, which makes one wonder whether or not the ongoing 200 point fall is justified. As a reminder, Lev money and asset managers have been committed Yen shorts in the last few weeks, implying that the current sell-off has plenty of Yen short money bailing out/stop triggered.
(Market News Provided by FXstreet)