Japanese Yen (USD/JPY) Analysis

USD/JPY registers massive decline, stoking intervention speculation
Rate differential explains why FX intervention is largely expected to be ineffective
Major risk events ahead: US QRA, FOMC , manufacturing PMI and NFP
Get your hands on the Japanese Yen Q2 outlook today for exclusive insights into key market catalysts that should be on every trader's radar:

USD/JPY Registers Massive Decline, Stoking Intervention Speculation

USD /JPY tagged the 160 mark and immediately dropped towards the 155 level as speculation around possible FX intervention did the rounds on Monday morning. The early surge in the pair came off the back of Friday’s disappointing Bank of Japan (BoJ) meeting where Governor Ueda mentioned that the weak yen has no significant impact on inflation .

Japan is currently on holiday for Showa Day, one of the holidays observed during Golden Week. Further holidays will be observed this Friday and Monday next week. The bank holidays naturally present a lower liquidity environment which can help advance a sharp, large move in USD/JPY.