MOF-Triggered Yen Surge Rocks Markets with Historic Volatility

The Japanese Yen saw a significant surge on Thursday, and many are pointing to an intervention by the Ministry of Finance (MOF) as the cause. The extreme volatility in the currency market was reminiscent of a similar event on April 30, when the MOF intervened.

USD/JPY plummeted almost 600 pips from its high to an 11-week low, dropping below 160 before finding support just above its 200-day EMA. The daily range was wider than that seen during the April 30 intervention.

The EUR/JPY also saw significant movement, requiring support after the drop in USD/JPY. While it is not officially confirmed whether the MOF intervened, the market's reaction suggests a strong possibility.