USD/JPY taking on a steady recovery post-Brexit

The USD/JPY pair has recovered almost 500-pips from the Brexit win induced massive sell-off, and now looks to extend the rebound beyond 103 handle on expectations that the BOJ might intervene after the sharp yen’s rise.

Moreover, as dust settles over the Brexit aftermath, markets resort to take profits off the table on their shorts after USD/JPY slumped to the lowest level since Nov 2013.

Earlier on the day, the Britons voted to leave the European Union in an historical event, which took market off-guard and swept global equities off the floor, triggered fresh risk-off profile across the board and hence, bolstered the demand for the safe-haven JPY.

Meanwhile, reassurance from BOJ Governor Kuroda that the bank will provide enough liquidity also provided some support the USD/JPY pair. Looking ahead, markets now await Japan’s finance minister’s presser for fresh insight on the yen markets.