USD/JPY continued to dive on Tuesday as the Dollar was sold off in general. The pair is in a massive bear market, so this coincides with the overall trend as well. The breakdown has been brutal, and selling at this point would simply be chasing the trade. One would have to think that it is only a matter of time before the Bank of Japan steps into this market and starts selling Yen again. The 75 level looks like an obvious point in which they might. The acceleration to the downside certainly has people paying attention in Tokyo. We are currently avoiding this pair.
Written by FX Empire