The USD/JPY pair sat fairly still during the Wednesday session as the pair finally reached the “meat” of the support. The pair is decidedly bearish, but the Bank of Japan remains below and willing to intervene if the pair falls too quickly. The easy pips have already been had to the downside, and from here to 75 should be more of a grind lower. The BoJ hasn’t come out and complained about the move down yet, but it certainly is coming. Once they start complaining, we will know we are closer to intervention. Because of this, we feel this pair should be avoided at the moment.
Written by FX Empire