Bank of Japan Intervention: USDJPY Trade Volume Spikes
Forex traders queue behind Yen following Bank of Japan intervention on the currency. USDJPY was the most-traded currency pair on the interbank market on Wednesday when this week’s second suspected intervention took place following the US Federal Reserve’s May monetary policy press conference.
Yen trading volume surged to $39.3 billion, or 3.6 times its 12-week average, Wednesday, making USDJPY the most-traded pair on the interbank market, according to Goldman Sachs data sourced from two of the most popular interbank trading venues, including EBS and RUT platforms.
The data set is accessible on the Goldman Sachs Marquee platform. The data showed that 76% of trade took place today, with yen volume far exceeding that seen in the next three most-actively traded pairs, including USDEUR ($9.7 billion), AUDUSD ($4.0 billion) and GBPUSD ($3.5 billion).USDJPY slumped from to 152.79, from 157.59, in that hour amid widespread sales of the US dollar following Wednesday’s Fed decision.
Yesterday’s action was the second suspected official intervention this week with the other coming on Monday when USDJPY trading volume surged 880% above its 12-week average, with turnover reaching $70.3 billion.
USDJPY collapsed to 154.51, from 160.21 during the European morning that day. Trading volume has been elevated at higher-than-usual levels since April 29 and sat 253% above its 12-week average, at around $24.4 billion, as the market responded to the Bank of Japan’s latest policy decision two days later. NDIC Increases Maximum Deposit Insurance Coverage for Failed Banks
