Now, this is starting to look a bit more forceful. The 150-pip decline earlier still had some semblance of the move that we saw on Friday last week. But now, the drop in USD/JPY is starting to look more forceful and convincing. If anything, we might have finally hit the nerve and Tokyo are responding in due kind. USD/JPY now down to 156.85 as I update the post.
The question now is how long can Tokyo keep this up for as they look to draw a hard line on the yen fall? The big problem for Japanese officials is that they don’t have the fundamental narrative on their side.
This article was written by Justin Low at www.forexlive.com.