Yen crosses bearing the brunt of Nikkei story
There's nothing like dropping a bombshell late on a Friday. It's taken a while for the news to circulate and we're now seeing USDJPY drop to 110.15 from above 110.40.
With Europe mostly out the door liquidity isn't going to improve anytime soon so we may see further downside moves.
It's going to put some risk into the weekend unless we get a swift rebuttal from the BOJ.
On the face of it the story shouldn't be that much of a shock. At some point the BOJ would have to prepare for an exit. The news could be viewed positively if they are making plans early rather than leaving it late.
I'm half tempted to fade this move if we get a deeper dip as the BOJ aren't exiting tomorrow, or anytime in the foreseeable future, so this is just news bots going to work.
