Potential intervention from Japanese officials strengthens yen
The USDJPY pair extended its downward move in the afternoon, falling over 2.0% as a likely result of intervention from the Japanese Ministry of Finance. Additional USD weakness caused by the WSJ headline that showed that some FED members are signaling a desire to slow down the pace of the increase soon to gauge the impact of such tightening on growth. Later in the session Fed's Daly, which is considered as a mouthpiece for Powell, made some dovish comments. Daly said that the FED needs to do everything in its power not to overtighten. as we are currently in the stage of policy where we need to be thoughtful. He also noticed that rental price inflation is starting to slow.Â
USDJPY pair made nearly 600 pips move today and is approaching local support at 146.00. Source: xStation5
