USD/JPY Testing BOJ Resolve
The USD/JPY pair continues to fall down towards the 82.864 low. The previous reversal at that point was a result of the Bank of Japan coming into the markets in order to weaken the JPY. But that intervention did not change the fundamentals or the trend of this pair. If the Bank of Japan intervened once at the price level, there is no reason not to suspect that they will intervene once again. You can see how fast the market runs on intervention and you can also see how fast a market can run on just the rumor of intervention. So if you are short the USD/JPY, you definitely want to be aware of the possibility of a volatile reversal.
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