Breaking: USD/JPY corrects sharply below 144.00 as Japan intervenes
USD/JPY has come under intense selling pressure and given away over 200 pips on news that the Japanese government has intervened in the forex market to stem the rapid decline in the yen.
Japan's top currency diplomat Masato Kanda confirmed over the last minutes that they have intervened in the FX market. He added that the government “took decisive action in the forex market.”
Earlier in the day, Kanda warned that they “will respond appropriately to fx moves without ruling out any options.”
In response to the big move by Japan, USD/JPY is in a free fall and has broken several critical support levels, as yen bulls are being rescued finally. The pair hit the highest level in 24 years at 145.90 before the Japanese authorities deemed it necessary to step in, in order to save the local currency. The government intervened to buy the yen for the first time since 1998.
Ahead of the announcement, the major was trading at near 145.80 levels, adding over 1% on the day, having benefited from the Bank of Japan’s (BOJ) status-quo. The BOJ kept its policy settings unchanged, maintaining its ultra-loose dovish bias. Hawkish Fed outlook and the BOJ’s refusal to act drove the currency pair to the best levels seen in over two decades.
At the time of writing, USD/JPY is trading at 142.65, shedding 0.95% so far.
UJSD/JPY: 15-minutes chart
USD/JPY: Technical levels
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FXStreet Team
FXStreet
