US dollar sinks as inflation cools. USD/JPY plunges

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USD/JPY
is
plunging
after
the
softer
US
CPI
numbers.
This
could
be
a
squeeze
on
the
very-crowded
long
trade.

The
dollar
is
broadly
weaker
but
in
the
50-100
pips
range
on
most
pairs,
however
this
move
is
now
nearly
300
pips.
That
either
speaks
to
a
real
squeeze
and
possibly
intervention.

Intervening
at
a
time
like
this
would
mark
a
departure
for
the
Japanese
Ministry
of
Finance
but
a
new
currency
czar
was
installed
last
month
and
he
may
be
using
new
tactics.
It’s
often
said
that
currency
intervention
works
best
with
a
tailwind
and
CPI
was
certainly
that.