The USD/JPY pair rose on Thursday as traders heard remarks out of the Bank of Japan suggesting that the current exchange rate does not reflect fundamentals. The BoJ has a long history of intervention, and as such – traders will bail out of short positions rather quickly when there are threats of the bank stepping in. The truth is that it is only talk at this point, but the real question becomes why bother fighting the BoJ? The risk simply isn’t worth it in this pair.
Written by ForexMansion.com