USD/JPY broke down sharply after Bernanke crossed up the market by making no reference to keeping rates unusually low for an extended period in his prepared remarks only to toss in the phrase in the Q&A.
The buck is showing signs of drifting slowly higher this afternoon, especially with “risky” assets performing well but USD/JPY will have trouble overcoming the area of resistance around the 93.25 level on rebounds. The move down was so sharp, no doubt there are a still dealers wearing positions from earlier in the day that they would love to shed into any strength.
We trade now at 93.10 after bouncing from near rumored 92.80 bids.
