We have seen a huge sell-off of the Yen accross the board overnight after Japanese Finance Ministry unilaterally intervened in the FOREX markets by selling their own currency.
As a result, the USD/JPY sharply bounced 200 pips to trade back above 79,00. Now the target is the former 80,00 support which was mentioned by Finance Minister Yoshihiko Noda as an important level they were watching.
This intervention makes sense from a technical stand point as the market was poised to a meaningful corrective move. The daily and weekly studies were indeed showing reversal signs.
The main trend remains bearish though so we will see how market participants digest this intervention over the coming days before considering a major reversal.
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