USD/JPY may drop as yields plunge

In light of the BoE intervention today, we have seen bond yields plunge across the world as it has given rise to speculation that other central banks might intervene in a similar way.

As a result, low- and zero-yielding assets have all bounced back, including the Japanese yen (which was also bought by Japanese government intervening in the FX market last week).

With rates nearing that 145 area and stalling, there is a raised possibility for a short-term dip in the USD/JPY. So watch out below!