USD/JPY Technical Analysis October 31, 2011

The USD/JPY fell again on Friday as traders started to lose fear on a Bank of Japan intervention, according to the options markets. The idea that they wouldn’t be as interested in the value of the Yen is probably a dangerous one to trade off of. The market is pressing the patience of the Bank of Japan, and we should see soon if they lose patience. The upside is probably more difficult for traders to stay in, but the 75.50 area has been very strong as support and intervention form that level would certainly knock a lot of the speculative traders out of the markets. Because of this, we buy only – but need to see supportive candle – which we don’t at the moment.

Written by FX Empire