USDJPY 10 mins c
USDJPY 10 mins

USD/JPY is plunging after the softer US CPI numbers. This could be a squeeze on the very-crowded long trade.

The dollar is broadly weaker but in the 50-100 pips range on most pairs, however this move is now nearly 300 pips. That either speaks to a real squeeze and possibly intervention.

Intervening at a time like this would mark a departure for the Japanese Ministry of Finance but a new currency czar was installed last month and he may be using new tactics. It's often said that currency intervention works best with a tailwind and CPI was certainly that.

USDJPY daily
USDJPY daily