The Yen weakened overnight after several Japanese officials expressed their concerns about the recent volatility in the exchange rate and said that they are closely monitoring the moves in the FX market. USD/JPY rallied from 112.00 to a high of 113.00, where it ran out of momentum and fell back to 112.70. Volatility is likely to remain high and price action choppy. The short-term tech outlook is clearly bearish, but BoJ intervention could always lead to a quick spike like seen yesterday ahead of the NY open.
Meanwhile, the Euro weakened slightly, along with the British Pound. The commodity currencies also fell against the US Dollar, with AUD/USD declining from 0.7125 at the Sydney open to a low of 0.7095. NZD/USD started the day around 0.6730 but came under pressure ahead of the Tokyo open and reached a low of 0.6660.
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