USD/JPY – Turns positive, did BOJ lend helping hand?
|Bearish momentum in USD/JPY suddenly ran out of steam forcing us to question whether the Bank of Japan (BOJ) made its presence felt.
The spot turned higher from the low of 100.08 levels to near 5-DMA level of 100.58 levels.
100.00 levels is the line in the sand
The line in the sand for BOJ and USD/JPY bulls is 100.00. Before June 24, the pair was last seen trading below 100.00 levels back in November 2013. Furthermore, we have had only one daily close below 100.00 since June 24. Meanwhile, the pair printed intraday lows eight times since June 24.
No wonder the bears get nervous each time the spot nears 100.00 levels, given the probability of BOJ intervention is always high near the psychological level.
USD/JPY Technical Levels
Acceptance above 5-DMA level of 100.58 would open doors for 100.00 (zero figure), above which the spot could target 101.33 (10-DMA). On the lower side, a breakdown of support at 100.00 could force bulls out of their longs and lead to quick fire drop to 99.00 levels, under which a major support is seen at 98.79 (Brexit day low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.