USD/JPY freefall continues
The US dollar dropped to a fresh session low of 106.64 as it blew through more stops ahead of the European weekend.
Broad sentiment is deteriorating as the market kicks and screams because it didn't get the latest dose of QE.
The drop breaks the modest base from earlier this month. Scaling out, there isn't much support for the pair to fall back on.
The CFTC positioning data showed specs were heavily short the pair already but real money is just starting to get into the act. There are some major, structural yen shorts out there who are heading to the exits.
Naturally, Abe and the BOJ won't be pleased. They could certainly argue that trading is one way but this is some tough momentum to fight. Today is a holiday in Japan. They're back Monday but a 3-day holiday begins from Tues-Thurs so you can essentially count out domestic money until the week after.
Technically, support from the October low and Dec 2013 high converges around 105.20.
The weekly loss is the largest since 2008.
