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USD/JPY smashed in late US trading yet to fully recover

Yesterday evening the USD/JPY dropped back to test the 157 handle following what can only described as a return of the Dovish comments from the Fed boss. However, that level held at the first time of asking and the dollar rebounded back above 157.50. What happened next around one hour ahead of the US close was surely another round of BOJ intervention. That is because the USD/JPY collapsed over 400 points ahead of the US close. The low set was at 153.04. It did rebound into the US close, to end that session at 154.57. It has rebounded further so far today too, from a low at 154.25. The high seen has been set at 156.28, but it is off that high now. It looks like the BOJ picked a time to intervene when the markets was sparse and liquidity low. Now some might say that is smart of them to do that because it its maximum impact one is looking for then that is the way to achieve it and at a time when the markets probably least expected it too. As per earlier this week, the BOJ has remained very tight lipped and refused to comment or confirm their actions. The USD/JPY is currently trading at 155.66

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