Yen pairs saw a sudden drop across the board at the open of New York with USDJPY seeing lows of 153.89 from 154.76 in two minutes, EURJPY dropped to lows 163.772 from 164.554, and GBPJPY with lows of 191.856 off 192.794.
Note market was highly wound up over extremely Overbought USDJPY, EURJPY, and GBPJPY and talk of the BoJ ready to pounce at the 155 level for USDJPY.
This said the drop lasted all three minutes with no confirmation of BoJ activity. Moving forward Yen pair’s should be seen nearing a top as the BoJ and Fed may be set for a policy divergence with the Bank of Japan symbolically getting out of ZIRP, March 19. The Fed on the other hand has been delaying cutting rates though seen doing soon in time.
