Technical Analysis

Looking at the impact on the major JPY pairs today

Japan 10 year yield

The BOJ surprised the market by resetting the target rate for the 10 year up to 0.5% from 0.25%. The chart is what it looks like in the actual cash market with the yield moving toward the 0.5% level (reached 0.432%) today. That sent the 10 year yield to the highest level since midyear 2015.

JPY currency pair are down sharply(higher JPY) led by AUDJPY

In the currency market, the JPY pairs all moved sharply higher (higher JPY).

Looking at the snapshot of the USDJPY and the major crosses, the biggest mover was the AUDJPY which is down -4.22% on the day (higher JPY). That one-day move is the largest since June 24, 2016 when the price moved down -5.68%.

The last time the AUDJPY moved down this low was June 2016

For the USDJPY, it is down -3.82% on the day. Recall on November 10, the USDJPY also moved down sharply. On that day the pair move down -3.72%. In June 2016 it fell -3.699%.

USDJPY moved down a similar amount last month after CPI

So what happened in June 2016?

According to CNBC, the JPY was pushed higher by Fed, safe-haven flows amid the Brexit fears.

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