Dealers are not entirely sure what the catalyst for the USD/JPY liquidation has been but prices have tumbled to 92.82 thus far. The selling accelerated upon breaking support in the 93.15/25 region.
Looks like the market got just too long of USD/JPY and JPY crosses on reports of strong Asian growth overnight after big jumps in Singapore and China GDP and the unwinding of SGD/JPY cross positions overnight. Strong US data only added to the problem.
Bids are eyed at 92.80 and again at 92.60; stops are below the later level.
EUR/JPY , AUD/JPY and GBP/JPY sales have been seen in recent minutes as the big move in the JPY leg prompts traders to book profits. This could limit EUR/AUD/GBP upside versus the dollar, near-term.
