The USD/JPY pair fell on Wednesday as the central banks of the world have struck a coordinated play on driving the cost of borrowing Dollars down for some of the larger banks. The flooding of Dollars into the market drove this pair down, and the trend would have suggested it was going to fall to begin with. Of course, the Bank of Japan is below, so we would sell on a break of the lows for the day, but would also be quick to take profits as there will certainly be high risk for intervention in the lower part of the previous consolidation area – roughly at 76.
Written by FX Empire