It's definitely not normal price action. Spreads widened to 70 pips on some pairs etc.
Expect to hear something from the Bank of Japan today as they respond to the FX flash crash
Japanese officials will not be happy about this
You can almost guarantee there will be a report later saying that officials from the Bank of Japan, Financial Services Agency and Ministry of Finance have been calling around and trying to get on top of the moves.
The yield on the Japanese 10-year note also fell below zero for the first time since 2017.
I would even expect a statement from the BOJ saying that the disorderly moves and yen strength are unwelcome. The BOJ has been in an eternal struggle against yen strength and this is not the way they wanted to start off the year.
The headlines should weaken the yen slightly and talk of intervention will do even more. Heads up as it could happen any time in the next couple hours.
Source: https://www.forexlive.com/centralbank/! ... y-20190102
