US dollar declines extend further and stocks add to gains. USD/JPY breaks 142.00 | Forexlive

What a day this is turning out to be.

USD/JPY is now down 436 pips or 3% to 141.90. It’s the lowest since Japan’s Ministry of Finance first intervened.

The latest leg of market moves comes with stock markets absolutely sizzling. The S&P 500 is up 4.2% and the Nasdaq up 5.7% (!).

These are the largest moves since April 2020 and underscore how desperate this market is for a Fed pivot.

Remember, US dollar longs are an extremely crowded trade so this is a rush to the exits. The stock market has also been severely beaten down so a relief rally can really run, though these numbers are incredible already.