USD/JPY rebound proves short-lived as it falls closer to 140

Earlier this afternoon an intraday rebound in the USD/JPY saw it recover quite sharply from an earlier session low at 140.71, back above 141, to a high at 141.14. That rebound was covered in an update here. However, since then the dollar has fallen back harder and once it took out that earlier low, it has fallen harder and faster towards the important 140 level. The prospect of that being on the radar was noted here much earlier this morning. The low seen so far has been set at 140.25 and it has taken all the major Yen crosses lower with it. The one that has lost the most ground of all is the GBP/JPY. That has now fallen to exactly 179.00. If you are looking for drivers behind these moves then I can suggest that it evidence of further capitulation on short Yen positions ahead of the year end on Friday. The USD/JPY is currently trading at 140.33