USD/JPY Plunges Amid Half-Year End Flows and Cautious Fed Comments

The USD/JPY currency pair took a hit on Wednesday, falling from around 157.5 to around 156.4 in Asian trade.

This drop of about 0.7% was largely attributed to Japan's fiscal half-year end on September 30, as Japanese investors repatriated money and exporters sold foreign currencies.

The selling continued even after the Tokyo fix, a daily reference rate set in mid-morning that is a focal point for corporate flows.

Official comments from Japanese and US officials also contributed to capping the pair. Market commentary pointed to remarks from Fed's John Williams, who said there is no urgency for another hike, though one more rise may be appropriate late this year if the economy evolves as forecasted.