USD/JPY was under pressure together with the strengthening of the Brexit cause. And when it looks more and more real, USD/JPY went all the way down to 98.82. But from there, a bounce to 101.50 is seen.
Japanese officials have noted that FX movements are “roughâ€. It does not sound like market commentary. It seems they do not accept it and intervene. These are very choppy waters. GBP/JPY is down to 139.64.
Update: UK leaves the EU – it is official – expect more crashes
USD/JPY is struggling with the 100 level. The Japanese authorities have called a press conference to explain the moves. In addition, circuit breakers were triggered in the Nikkei. The yen could give a better fight than other currencies. It’s in demand and the central bank struggles – very different from other currencies.
Here is the weekly USD/JPY chart. As you can see, we are at the lowest levels since 2013, before the second wave of the BOJ’s QQE.
