USD.JPY flash crash 16th Mar, 2011

On 16th Mar, 2011, USD.JPY dropped to a record low of under 76.50. The previous record low was 79.75. The dropped occurred after 5pm, which is quiet time for the markets. It is the end of the US trading day, and too early for Asia to start, so spreads were very high, and liquidity poor.

Another reason for the move was rumours that JPY funds would be repatriated to help rebuild after the tsunami.

The unwinding of carry trades could also have added to the move.

USD.JPY 5min 2011-03-16

There is a gap between 17:00 and 17:15 as I do not get continuous quotes for Interactive Brokers.

The JPY also rallied against other currencies such as AUD and EUR.

The move this size, over 3%, can destroy an account with high leverage.