USD/JPY spikes to 121.30, knee-jerk reaction on Japan’s Yamamoto’s comments

By FXStreet FXStreet (Mumbai) – The Japanese yen shaved-off gains and plunged to fresh weekly lows versus the US dollar in the late Asian trades, with USD/JPY now fading a spike beyond 121 handle and reverted to familiar ranges near 120.70 levels.

USD/JPY jumps nearly 100 pips

Currently, the USD/JPY pair trades 0.13% higher at 120.69, reversing a spike to 121.29 – fresh weekly highs. The major rallied almost one big figure in a knee-jerk reaction to Japan’s ruling party member Yamamoto’s comments, citing that 30 Oct BOJ meeting would be a `good opportunity’ for more easing, adding that is imperative inflation reaches BOJ goal around H1FY16. While also adding, Japan should issue new JGB’s for stimulus if needed.

However, the impulsive spike to weekly highs seems to have lost momentum and the pair retraced below 121 handle, with the yen switching to the losing end.

Earlier this session, the yen was better bid versus the greenback amid extended risk-off moods as the Asian equities reversed Wednesday’s rally and sharply fell.

Later today, the major will be influenced by the risk-off/on sentiments while the moves on the European and US equities will also be tracked for further momentum. On the data space, weekly jobless …read more

Source:: FX Street