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Japanese Yen plunges versus dollar after sharp, fast USD/JPY drop
USD/JPY fell quickly from near 161.5, slicing about 2.3% to trade above 159.5, despite no scheduled market catalyst.
USD/JPY dropped sharply in minutes, trading just above 159.5 after falling 2.3%. The selloff pushed through the 50-day EMA near 161.5 and later stopped within 20 pips of the 200-day EMA just below 158.0, with the move described as arriving too fast to line up with any calendar item.
FXStreet reported that the fall began at 13:30 GMT and was largely over before many desks had time to fully read the tape. One trading desk recorded roughly $8.1 billion of selling across core venues in the following 10 minutes, and volumes across the FX complex ran far above normal.
The outlet said no single data trigger was identified for the size of the move, but it linked USD softness earlier in the day to U.S. releases. At 12:30 GMT, advance second-quarter GDP was 1.5% versus a 2.1% consensus, and core PCE inflation was 0.1% month over month versus expectations in the market.
FXStreet also pointed to broader timing and positioning, noting that the Yen’s move came without prior weeks of verbal warnings or calibrated hints that preceded earlier steps. The article added that Japan intervention authorities were unreachable for comment and the government offered no new statements after the move.
Looking ahead, the piece said the Bank of Japan is set to announce policy on Friday, with expectations to hold at 1.00% after June’s increase. It also noted that Tokyo’s Outlook Report is expected to include a potential revision to the fiscal 2026 growth forecast toward 0.8% from 0.5%, with October described as the favored timing for the update.
Latest closeUSD/JPY 159.74 ▼2.5%