Big slump looks like opportunistic action, short yen squeeze had been brewing
Nervy mood to extend into BoJ
USD/JPY getting hammered, off around 4 ½ yen now, in what is a very timely, opportunistic move: out of the FOMC dollar disappointment and data, into the BoJ where speculation has swirled, with ongoing heavy short yen positioning and with the market second-guessing scenarios from the BoJ meeting tomorrow. If it’s not the MoF, as it clearly looks like, then someone has done a good job of spoofing everyone to jump with a big exit.
This move looked like it had been brewing a while. Sentiment is likely to remain very nervy now into the BoJ announcement