USD/JPY Back to Driving the USD/DXY BasketU.S. Dollar / Japanese YenFOREXCOM:USDJPYFOREXcomIn late-January it was the stunning sell-off in USD/JPY that drove a decisive move in the USD which, in response, drove breakouts in EUR/USD and GBP/USD. DXY moved deeply into oversold territory in late-January and it was the month of February when the currency built an ascending triangle and that led into the March breakout. Bulls were large and in-charge even through the current daily bar's open, but so far today, there's been another stunning turn-around in USD/JPY and this has had a similar effect of driving the US Dollar lower even though rate cut expectations in the US are getting priced-out. This sets up for what could be a dramatic Friday as these 'Yen-tervention' themes tend to pop up around a weekend, very similar to that late-January episode. Whether or not it's an actual intervention is probably more debatable as the reality is this is a very crowded trade and just a hint or whiff of chance can compel profit taking, especially when that 160.00 line in the sand has been such a tenuous spot for bulls even going back to 2024. If we do see the USD/JPY sell-off stretching like an 'up the stairs, down the elevator' move, this can quickly bring back to life EUR/USD and GBP/USD strength. In that scenario, it's the 151.95-152.50 zone that's of interest for USD/JPY support as that's where the past two sell-offs have stalled and then eventually turned around. - js