USD/JPY slumped 130 pips on Monday, rebounded 130 pips on Tuesday and fell 130 pips today.

These are wide moves in a pair that was once known as a sleepy pair. To start the week, trade was the driver but today the focus was on the US economy. Soft readings on ADP employment and ISM services were the catalyst for USD sales.

The selling didn’t kick off until the start of US trading as the data began to cross. To the downside, there is support at yesterday’s intraday low of 142.36 followed by last week’s low of 142.10.

Keep an eye on Treasury yields as US 10s have fallen to a one-month low of 4.35%. The market is fully priced for a September rate cut.

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