USD/JPY fell initially on Friday, and retested the 76.50 area. This area is becoming more and more interesting to us as it looks like a floor for this pair at the moment. With Bank of Japan intervening both verbally and physically in the recent past, this pair looks like it is being held aloft in the 76.50 area. This could perhaps be some kind of clandestine intervention by the BoJ, something they have done in the past. Because of this, we like short-term plays on the long side from that level. Granted, it isn’t a longer-term play, but why not take 30 – 50 pips if the BoJ is willing to help you get them?
Written by FX Empire