Strategy: Flat
As with the August intervention before it, October’s MOF-engineered spike is being unwound as risk aversion and Fed-driven pressure on US Treasury yields apply downward pressure. Japanese officials’ unofficial line in the sand seems to be the 76.00 figure, will selling likely to slow as the pair nears this boundary amid fears that the authorities will step in again. We are not partial to jumping into the tug of war between markets and policymakers, opting to remain on the sidelines for now.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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