USD/JPY Analysis (August 7)

As often, the effect of the BoJ intervention was short-lived with the pair stalling out ahead of its key 80,00 level.
The Japan officials were considering a break below 80,00 as a good reason to sell their own currency. Well, it seems that all that they will get is a pullback towards this former support.
A collapse of the US Dollar, after the news of US credit rating downgrade, would certainly not help a bounce on the USD/JPY.
We will maintain a bearish bias until the pair manages to establish above 80,00.