The most recent technique from Japan is to intervene when there are elements working of their favour in nudging USD/JPY decrease. They did it final week after key US information releases and there’s a suggestion that they’re again at it once more at present. The drop decrease within the pair is not fairly a pointy one (that is my solely skepticism to this) however the promoting strain has been fairly forceful within the final two hours.
And if Japan was on the lookout for added assist in giving a slight intervention nudge at present, there are a number of causes.
The primary being a key break of the trendline assist for USD/JPY this yr. Which may have triggered stops amid a fast flush decrease within the pair earlier, when worth fell to round 157.00.
Then, there’s additionally the truth that we’re seeing equities have an off day with threat sentiment turning bitter. It isn’t simply the yen that has flourished to date at present, even USD/CHF is down 0.7% to 0.8875 at present.
However maybe a inform in there being heavy USD/JPY promoting is that the greenback has struggled regardless of the extra damaging threat setting at present. Actually, the buck is the weakest performer throughout the board with even the commodity currencies sitting larger towards the greenback.
Nonetheless, this factors to some suspicion that Japan may need gave issues a little bit nudge on the again. However from the worth motion, it isn’t as clear because it was on Thursday and Friday final week.
This text was written by Justin Low at www.forexlive.com.
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