What just happened in JPY?

Anybody have any insight to why the XXX/JPY's just took a nose dive?

Comments by Paulson

Seems like all of a sudden someone wanted to strengthen the Yen across the board. According to the news wires, Treasury secretary Paulson just said he was "watching" the yen. That comment apparently broke major support.

31 Jan 2007 16:00 GMT

BULLET: DOLLAR-YEN: Lurches through bids at Y121.20 area to..

DOLLAR-YEN: Lurches through bids at Y121.20 area to forge fresh lows for
the session as Paulson reportedly says he is watching the yen carefully.
Stops under Y120.95 under threat after bids ahead of the level get
cleaned out.

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31 Jan 2007 16:01 GMT

BULLET: PAULSON: Watching Japan FX, not worried by free......

PAULSON: Watching Japan FX, not worried by free floating rates. Economic
fundamentals driving yen, not intervention.

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All today's market move, News "not move" depends on the only news we are waiting for dear traders....
Whole finnace world is waiting for annoncement of USA Intrest rate!
Big brother try to give a "market correction" before news
how big chance is for surprise = violent move like we see now = WATCH OUT

How long will this jpy rally last then? I'm in a good spot right now.

Of course.... its always followed by the statutary comment afterwards..."Strong dollar in US interests....." so back up we go

I wonder why Paulson's testimony/press conference was not listed on any forex calendar. I just happened to see it on TV by chance.

broke 121.00 already........i think US interest mostly remain unchange.

right so why isnt the gbp going down?

Can we expect a strengthening Yen if the fed holds 5.25% interest? GFT's newswire quotes senior currency strategist at RBC Capital Markets.

"The Fed is widely expected to hold the Fed Funds rate at 5.25%."

How many times you see so many "A" news & not market reaction direckly? not even spread change at any ( FXCH ACM etc). How many times u see such STRANG, STRONG move in few hours?
check my signals/read few post i leave....
Hope for BIG money to all private traders all around world today!

I cannot see any good reason why GBP would go down. If the US interest rate is not going up, and it probably is not, then if you look at the US economic news today, overall, it is not good. Frankly, I would expect the GBP to be going up, which it is. In fact, the US economic news today would suggest that any interest rate increase in the near future is unlikely. The economic news does NOT suggest any hint of inflation, rather of economic slow down which usually calls for a rate DEcrease.

The drop in the yen crosses is due to some statements by Paulson, but those statements do not seem to have been strong, in fact not as strong as what the G7 have said about the yen, so the effect is likely to be very transitory.