Traders cite technical, intervention, or flow-based reasons after a sharp reversal with no confirmed catalyst.
USD/JPY dropped abruptly from a session high of 161.80 in Thursday’s US afternoon session, reversing sharply without a clear trigger. The move resembled large order flow rather than a gradual technical unwind, leaving market participants searching for explanations.
Earlier, Japan’s Chief Cabinet Secretary Kihara warned of potential action against excessive yen volatility, though the 16-hour gap between his remarks and the sell-off complicates a direct link. The US Dollar Index fell 0.80% to near 97.70, driven by easing geopolitical tensions following a US-Iran ceasefire deal.
No official confirmation of Ministry of Finance intervention has emerged, and the cause of the reversal remains unconfirmed. The pair settled near 161.35 after the sharp decline.