USD/JPY takes a fresh dive

USD/JPY is back near the post-CPI lows in what looks line another round of intervention from Japanese authorities.

BOJ data suggests Japan may have spent over ¥3 trillion on intervention yesterday, or about $22 billion, which is more than I would have expected given the momentum they had on their side. It suggests that dollar buyers don’t have weak hands, even up at 38-year highs.

Today’s splash briefly took out yesterday’s low and we’re consolidating around there now.

The main thing we’re trying to figure out is the playbook here. From yesterday’s move, it looked like they were trying to find a headline to latch onto but today that’s not the case and we could simply be seeing daily efforts to knock the pair down.

This article was written by Adam Button at www.forexlive.com.