The US dollar has shown itself to be rather weak against the Japanese Yen during the day, which makes sense.
After all, the Japanese threatened intervention and then suddenly it happened.
They claimed they had nothing to do with it, but I find this very hard to believe. We fell 450 pips pretty quickly.
That being said, it is very interesting that market traders have jumped in right around the 156 Yen level. It's an area that’s been important in the past and quite frankly, I thought that was probably your low of the overall range.
Market Outlook and Central Bank Intervention
Because of this, I am interested in buying the USD/JPY pair. I don’t know that I would just jump in and do it immediately, but I certainly have no qualms about being long. Central bank intervention is something that a lot of people fear but the reality is, it very rarely works out over the longer term and I think you’re probably going to see some of that here.
Top Regulated Brokers
Nonetheless, do recognize that you do not have to be in this immediately. You can take your time. It’s okay to be cautious and methodical. I’m probably going to wait through Friday to see whether or not this can hold. If it does, then maybe Monday morning I’ll become a buyer.
I just don’t have any interest in trying to get too cute here. I think this is a market that probably needs to catch its breath. Quite frankly, I don’t see anything wrong with taking your time. Maybe we will build a little bit of a base.
Interest rates did drop a little bit during the session, so that of course had its own influence. But I think this intervention probably was to slow down the unraveling of the Yen. Market forces will make that happen eventually. I’m a buyer basically in this area, but I recognize maybe a day of stability might be helpful.
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