Well the “momentum” buyers from earlier got egg on their faces..didn’t they?.
Model and leveraged sellers booted the EUR/JPY down from 106.30/40 on the back of a weaker euro to 105.24, but perhaps the main reason was a comment on Dow Jones which quoted JP Morgan as saying talk of USD/JPY floor was “absolute nonsense”…. if the country implemented a floor, the Japanese govt would have to issue unlimited amounts of T-Bills, solely for the purpose of maintaining the floor.
USD/JPY hit a low of 76.67 before clawing it’s way back up to 76.90
