Breaking: USD/JPY plunges to test 122 the figure in huge sell-off

FXStreet Team FXStreet

USD/JPY has dropped a huge 120+ pips in the last hour of trade despite the Bank of Japan's intervention for a third day, and this is all rather counterintuitive.

Moreover, the yen has been the worst-performing Group of 10 currency this year, and as the year-end approaches, Japanese exporters will be reporting their financial results in yen. Traders could also be of the view that the Bank of Japan is doing whatever it can in a commitment to soften Japanese yields and prevent the 10-year JGB yield from racing beyond its upper limit. In turn, this gives the green light to the bulls to buy the yen knowing that there is plenty of liquidity on the other side. Simultaneously, US yields are in freefall with the 10-year down some 1.75%.

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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