There's a bit of suspicion of MOF intervention at first but that doesn't look likely to be the case considering how quickly USD/JPY was not really affected. Instead, the dollar was seen weakening elsewhere and this was the initial GBP/USD reaction:
Instead, it looks like headlines involving China are at work here with the country's officials said to be considering to cut inbound quarantine measures from 10 days to 7 days. The details of the report highlight that this will be a 2 days hotel quarantine and 5 days home quarantine, as opposed to the current 7 days quarantine in the hotel and 3 days quarantine at home. In turn, that is also seeing the offshore yuan strengthen considerably against the dollar:
That seems to be the sudden cause for the moves in FX amid the transition from Asia to Europe at the moment.
It's a tricky period when reading FX moves now as we could get Japan MOF intervention at any point, so keep your eyes and ears peeled.
In any case, I don't see this headline as being a game changer for the dollar - especially not with equities and bonds still under pressure. At most, it takes away just one part of the strong tailwind for the greenback at the moment.
