On Friday 21st October, the USDJPY had been climbing steadily, almost reaching the round number of 152.00. Then it reversed and spiked lower, from 151.50 reaching a low of 146.20.
This move was very similar to what happened on the 22nd of September, when the USDJPY climbed above 145 and almost reached 146 before crashing down to 140.35.
However, when the USDJPY came down in September, the BOJ did say that they had taken action to intervene and even announced that they had spent 2.84 trillion yen to prop up the yen. This time, in October, authorities from the Ministry of Finance have remained silent on whether they made any further attempts to support the currency including on Friday
With the BOJ policy decision on Friday (the intervention on 22 September was after the release of the BOJ policy decision). Look for further downside on the USDJPY, especially if the price breaks below the 147 support level, with 145 as the next key support level.
*Remember to check out my previous analysis on the Yen and the BOJ Intervention
This move was very similar to what happened on the 22nd of September, when the USDJPY climbed above 145 and almost reached 146 before crashing down to 140.35.
However, when the USDJPY came down in September, the BOJ did say that they had taken action to intervene and even announced that they had spent 2.84 trillion yen to prop up the yen. This time, in October, authorities from the Ministry of Finance have remained silent on whether they made any further attempts to support the currency including on Friday
With the BOJ policy decision on Friday (the intervention on 22 September was after the release of the BOJ policy decision). Look for further downside on the USDJPY, especially if the price breaks below the 147 support level, with 145 as the next key support level.
*Remember to check out my previous analysis on the Yen and the BOJ Intervention
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As the price approaches the 146 level, it is a whisker away from 145. Now I'm thinking, will the BoJ continue to intervene on Friday after the release of the monetary policy report? or is it job done for now?
The last time they declared an intervention in September, they took prices down to almost 140. Could we see another leg lower beyond 145?