USD/JPY Approaches 76.00 as BOJ Signals No Intervention

USD/JPY continued to drift lower in Asian trade coming within a few pips of the key 76.00 level after BOJ Deputy Governor Hirohide Yamaguchi said the he didn’t see the need for immediate policy action. USD/JPY has dropped more than 200 points since the uber-dovish Fed meeting last Wednesday during which the US policy makers indicated that they may keep rates low all the way to 2014. That announcement frustrated dollar bulls who had been expecting a break out in the pair on the belief that improving US economic data would temper the accommodative policy of the Fed.

Commentary from Boris Schlossberg, Director of Research, GFT