USD/JPY rose by more than 0.5% during the day and is now at 152.73

After the largest liquidation in history on October 11, market liquidity took a severe hit, with reports suggesting that many mid- and long-tail market makers suffered heavy losses. Consequently, it may take considerable time for liquidity conditions to normalize. The mass liquidation was primarily triggered by Trump's announcement of a 100% tariff hike on China, followed by a chain reaction from the USDe depegging incident. As a result, the market has likely entered oversold territory.