There are no clear answers about why a wave of US dollar selling and yen buying hit at 12:14 pm ET. Here’s what we know:
- USD/JPY seemed to be the culprit and lead the move
- Selling accelerated after USD/JPY broke the session low of 102.24
- Stops in dollar pairs and yen crosses undoubtedly added to the move
- 10-year Treasury yields fell as low as 2.43%, the lowest since May
- Today’s USD/JPY decline (even though it’s only 60 pips) is the largest in 4 months
- There were no headlines driving the news
It’s tough to make a trade when you don’t know why the market moved but in general moves that come on no news in illiquid markets fade away.