USD/JPY keeps above 125.00 despite more verbal intervention

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USDJPY W1 12-04

The pair has declined slightly from 125.50 to 125.12 earlier but is now holding around 125.30 levels. The short drop came from some verbal intervention by Japanese authorities again:

As mentioned earlier, this kind of jaw of local authorities doesn’t really mean too much when the BOJ itself prefers a weaker yen, depending on the balance of things. Add to that the lack of conviction when it comes to really intervening in the currency market, banning mass volatile movements.

No matter how much parabolic USD / JPY growth has been in recent weeks, we may not get a real intervention speech until 130 or maybe even 140. Even then, any currency intervention will be as difficult as it should be. coordinated with the U.S. Treasury in all likelihood. So, we’ll see.

For now, USD / JPY buyers are hoping to seal a break above the 125.00 mark and keep a weekly close above that will be a good step. The high of 2015 @ 125.86 may offer some resistance but beyond that, it is a clear sky at 130.00 as long as the bond market route continues to continue in the coming days / weeks.

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