USD/JPY was under pressure together with the strengthening of the Brexit cause. And when it looks more and more real, USD/JPY went all the way down to 98.82. But from there, a bounce to 101.50 is seen.
Japanese officials have noted that FX movements are “rough”. It does not sound like market commentary. It seems they do not accept it and intervene. These are very choppy waters. GBP/JPY is down to 139.64.
USD/JPY is struggling with the 100 level. The Japanese authorities have called a press conference to explain the moves. In addition, circuit breakers were triggered in the Nikkei. The yen could give a better fight than other currencies. It’s in demand and the central bank struggles – very different from other currencies.
Here is the weekly USD/JPY chart. As you can see, we are at the lowest levels since 2013, before the second wave of the BOJ’s QQE.