Forex: USD/JPY initially bounces only to quickly retrace post Bernanke speech

FXstreet.com (Barcelona) - USDJPY has initially reacted to the Bernanke's Jackson Hole speech by bouncing off its low at 78.34 to make an immediate high at 78.53.

Price has quickly retraced however in choppy conditions which have seen the Fed Chairman state that the US Labor market improvement has been "painfully slow", the economic situation "far from satisfactory" and that the "costs of non traditional policies are manageable". He is quoted as saying that whilst he sees QE as having benefitted the economy and mitigated the risk of deflation, it is a risky process but he believes that QE will "make money for taxpayers" but that any action could impair the functioning of equity markets. USDJPY is currently broken lower to trade at 78.22.