USDJPY DAILY CHART – Who’s afraid of the BoJ?
With the 151.97 line in the sand shattered, USDJPY is trading, not close to record but in unchartered waters. This leaves Japanese monetary authorities with nothing but verbal warnings for if they choose to intervene, there would be more than ample buyers lying in wait at lower levels.
This leaves the market wondering where the next line in the sand is. The obvious level is 155 but ahead of that is 153.50, midpoint of 152-155. On the downside, only back below 151.97-00 would slow the risk.
THIS WAS A TIMELY ARTICLE I POSTED YESTERDAY IN OUR BLOG. NOTE THE PRICE ACTION TODAY AFTER THE RETRACEMENTS RAN OUT OF STEAM. YOU WILL SEE WHY WHEN YOU READ THE ARTICLE.
Looking past the next 5 minutes, maybe the question to be asked and answered is, Does the ECB break ranks tomorrow with the Fed, and not necessarily come thru with an immediate cut, but lean hard in that direction? Personally I don’t see them having the huevos to do so. And if they don’t come across as cuts imminent, then what?
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