The greenback is not the one main forex having a foul day

If there’s one other takeaway from the backlash against the dollar amid Trump’s attack against Fed independence, it is that the Japanese yen has all but lost its allure as a haven asset and place of shelter for investors. In any other time when risk aversion hits and the dollar credibility/confidence is shaken, it would be a perfect storm for the yen to surge higher. However, not at this moment it would seem.

The yen has its own issues, not least with a government that is locking horns with its own central bank on policy setting. And that has created a lot of disdain for the currency alongside fiscal concerns as Japan’s mounting debt keeps on ballooning up.

USD/JPY has tried to push for a move lower twice today and in both times, sellers look to be coming up short. Now, Wall Street might still punish the dollar harder later in the day. But if there’s anything to be said about the yen, it is that the currency is no longer what it used to be.

The pair is now trading back up to near unchanged levels at 157.92 with the yen itself caught in a dogfight with the dollar for the worst performing major currency today – by some margin.

If something can’t go up on good news, then there’s definitely going to be trouble ahead. I wouldn’t be surprised to see markets step up bets for potential intervention if things continue down this path. And from the price action, it speaks a lot about the distaste in sentiment towards the yen currency at the moment.