USD/JPY drops below 130.00 as yen continues to pile on the gains | Forexlive

The pair is now down over 1% on the day with the drop below 130.00 continuing to vindicate the downside trend that has been ongoing, as mentioned a couple of times already this week here and here. In case you missed it, the trigger for the move today is the report by Japanese media that the government is set to appoint Kazuo Ueda as the next BOJ governor after having seen current deputy governor, Masayoshi Amamiya, firmly rejecting their approach.

The near-term bias in USD/JPY is also now siding with sellers, upon a drop below its 200-hour moving average at 130.59. It’s now a question of whether 130.00 can hold on the daily chart and if that gives way, we can expect a retest of the start-of-the-year lows potentially.

However, just be mindful of the UMich consumer sentiment survey coming up later today as well as the US CPI data next week. Those are key risk events to watch for the dollar and bonds. In the meantime, also just keep an eye out for any more potential headlines involving the BOJ as this may not be the last twist to the tale (although I think it is).