USD/JPY dropped nearly 70 pips on Reuters’ news saying, “a panel of academics and business executives on Monday urged the Bank of Japan to make its 2% inflation target a long-term goal, instead of one that must be met as soon as possible, in light of the rising cost of prolonged monetary easing.”

The news also mentioned that the proposal also included the need to have interest rates rise more in line with economic fundamentals, and normalize Japan's bond market function.

It’s worth noting that the panel includes members such as Yuri Okina, who is considered among the candidates to become the next BOJ deputy governor, per Reuters.

USD/JPY drops back below 130.00

Following the news, the USD/JPY pair dropped 70 pips to 129.20 before licking its wounds near 129.55 by the press time.

Also read: USD/JPY Price Analysis: Bulls attack 130.40 resistance confluence