USD was cruising generally this whole month over the JPY. This past week, we saw the USD/JPY continuing with this trend. There was a shock about the big drop in the USD of Friday 28/10/2016. There are two (2) possibilities to this drop even though the drop did not mean that the USD has lost its dominance over the JPY. This might have been caused by the market’s reaction towards the Hilary Clinton’s FBI investigation announcement. It might also be that this was the last Friday of the month and there was a lot of profit taking before the weekend even though the last day of the moth is only on Monday (31/10/2016). Both of them could have resulted in that drop.
We also saw the VIX going from just over 14.5 to above around 17.5 then came back to 16.5.
The COT Report also shows that there is a decline in long positions for the JPY for the past two (2) weeks despite having more numbers than the short positions. It also shows that there is a rise in the short positions for the past for weeks. http://forex.today/the-commitment-of-traders-report-total-non-hedging-fx-open-positions/
Generally there has been some fantastic news and data that came out of the US this month in comparison to Japan. e.g Q3 US vs Japan respectively: GDP = 2.9% vs 0.2%; Interest rate = 0.5% vs -0.1%. For a thorough comparison between the two kindly see US data Japan’s data