The yen rallied through key levels against the greenback on Wednesday, leading an unwind in global carry trades that pushed down currencies ranging from the Mexican peso to the Australian and New Zealand dollars.
The dollar-yen rate fell below its 100-day moving average for the first time since mid-March and also broke the psychological threshold of ¥155, with technical indicators suggesting the momentum can continue. The Australian and New Zealand dollars as well as the peso all slid 1% against the yen.
The moves on Wednesday were led by the yen, which has advanced almost 5% since slumping to an almost four-decade low on July 3. Bouts of suspected intervention by Japanese authorities on July 11 and 12 helped spur on the gain, along with comments on the currency by former U.S. President Donald Trump and senior Japanese political figures.