SpaceX OptionThe crazy crash of USD/JPY and the US Dollar Index
USD/JPY fell from 158.48 to 156.65 within a single 15-minute candle, dropping more than 180 basis points.
DXY fell from 99.90 to 99.40 within the exact same candle.
The US dollar is being sold off everywhere.
The US jobs report just came out with negative data, showing a loss of 23,000 jobs, whereas the expectation was an increase of 85,000.
This has killed any possibility of the Federal Reserve raising interest rates.
Lower US interest rate expectations mean reduced returns for holding the dollar, so traders are selling it off.
And when the dollar falls, it weakens against every other currency, which is why DXY also dropped significantly.
This is exactly what Japan needs. This year, it spent $160 billion trying to suppress USD/JPY, but the exchange rate always bounced back.
A weaker dollar can accomplish the same thing for free.
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