Any idea why usd/jpy is getting pummeled along with the eur?

dolamite 

Any idea why usd/jpy is getting pummeled along with the eur?

Greece, hello?

Mike

Seems a bit nonsensical, we have no interests in the country our GDP doesn't rely on their economy. I don't begin to try to rationalize the market, but at best this an excellent buy for the usd if you haven't in my opinion. So much drama the fx markets.

I'm aware of that, but this was an over reaction. I guess as big as the fx mkt is I should expect more drama than what I've been used to. We've still got the people's vote and the question of whether they can shore up the 1.7mmm on the 30th.

This could have something to do with arbitrage?? The EUR/USD, EUR/JPY, and USD/JPY all spiked down on the opening at 15:00 6/28/2015

Arbitrage means the following must give the same yen:

Case 1: Start with a dollar -> Buy Euros -> take the Euro to buy Japanese Yen using pairs EUR/USD, EUR/JPY

Case 2: Start with a dollar -> Buy yen using pair USD/JPY

So, In case 1, my dollar is worth less because EUR/USD went down, and the euros also yielded less yen because the EUR/JPY went down. Therefore USD/JPY must go down to make them equal.

So a carry trade of sorts.