USDJPY has dropped below the "Intervention" 150 level.
Price action in this pair has mostly been driven by the differential between the US 10-year treasury yield and the Japanese JGB 10-year yield.
After last weeks steep drop in the US 10-year yield, and a gain in the JGB yield on the back of the BoJ YCC tweak this differential has tightened dramatically.
It is likely the USDJPY pair will gravitate lower to fill the gap between the price and the yield differential.
Last time differential was here , USDJPY was at 147.30 that would be my first target to the downside.
Price action in this pair has mostly been driven by the differential between the US 10-year treasury yield and the Japanese JGB 10-year yield.
After last weeks steep drop in the US 10-year yield, and a gain in the JGB yield on the back of the BoJ YCC tweak this differential has tightened dramatically.
It is likely the USDJPY pair will gravitate lower to fill the gap between the price and the yield differential.
Last time differential was here , USDJPY was at 147.30 that would be my first target to the downside.