When the drop happened yesterday, I wasn’t convinced that it was actual intervention from Japan’s ministry of finance.
When the drop happened yesterday, I wasn’t convinced that it was actual intervention from Japan’s ministry of finance. I’m sure I was not the only one who felt that way.
After Katayama delivered her final warning, we saw USD/JPY initially fall from 160.50 to around 159.30 before tumbling quickly to around 158.00. It took over 20 minutes before the pair broke below the 158.00 level after. So, that was my only gripe in reading the price action above.
Typically, previous intervention attempts would see a stronger 200-300 pips drop without much pushback. This one took a bit of time, before the pair tumbled down to 155.55. To be exact, it took a little more than an hour to secure that near 400 pips decline.