Forex News – Dollar drops to record low against yen

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The dollar fell to a record low against the yen on Friday after breaking through stop loss and options barriers, with traders reporting initial large selling of dollars.

USDJPY has been trading in a range all week and remained above key support levels of 76.60 but today broke below it as the US session opened, and traders arranged their orders at the New York fix at 1100GMT triggered stop-loss selling, and accelerated dollar’s drop.

Reports say that a further drop was halted after Japanese banks then stepped in to buy dollars against the yen at 76.00 yen.

USDJPY touched an all-time low of 75.88 at 1103GMT, then moved up to 76.23 before settling a few minutes after.

The euro simultaneously rose to a session high against the dollar though much of that was spillover from the dollar selling against the yen. The euro hit a session high of 1.3891 by 1137GMT.