I had a whole post lined up about how Tokyo had every reason to step in but they didn’t earlier. So far, the drop is still seeing a couple of volatile pushes up and down when you drill down to the minute chart. It is not quite one with extreme force. As such, I’m inclined to say that this isn’t a move by Tokyo to step in. But rather, exacerbated flows making its way through some stop orders.
The pair now dips to 157.80 before being bought back up again to 158.20 in quick succession.
This article was written by Justin Low at www.forexlive.com.