USD/JPY Technical Analysis August 22, 2011

The USD/JPY pair fell hard on Friday, especially during the US session. The pair is suffering from the “flight to safety” trade at the moment as traders buy the Yen in droves around the world. This pair is important to watch however, as the Bank of Japan intervenes as a direct result of what happens here. The breaking of 76 will certainly pique the interest of the bank. The last intervention was at 77, and the BoJ has been very vocal about watching this pair. Intervention is probably a certainty at this point. It only comes down to when now. The daily candle looks supportive as traders certainly didn’t want to be short of this pair over the weekend with all of the risk involved in selling it.

Written by FX Empire