JPY Strength Accelerates: USD/JPY Plunges Below 200-Day MA
The Japanese yen has seen a sharp increase in value against the US dollar, with USD/JPY declining by 0.91% on September 2 and further extending its losses by 1.35% on September 3.
This move is comparable to the sharp decline seen around the July US-Japan FX intervention, when the pair declined by 1.32%. The current bout of JPY strength has been fueled by fundamental developments, including US Treasury Secretary Scott Bessent's support for decisive Japanese action and BoJ policymaker Hajime Takata's discussion of larger or consecutive rate hikes.
The damage to USD/JPY's uptrend is significant, with the pair breaking below its 200-day MA and erasing all gains since the August 3 low. Unless 158.04/50 is reclaimed, downside risk remains towards 155.03 and 153.84.