The USD/JPY pair had a bullish session on Tuesday as members of the Bank of Japan started the verbal phrase of their intervention in order to bring down the value of the Yen. The BoJ has a long history of intervention, so the markets tend to take these threats seriously. However, it rarely happens quickly, and the BoJ likes to telegraph these moves way ahead of time. As a result, we think the pair will rise over time, but not right away. In fact, we think consolidation is the way going forward in the near term.
Written by FX Empire