Chart of the day: USD/JPY

Blake Morrow Forex Analytix

Intervention risks for the JPY

The 6J is the Chicago Mercantile Exchange contract for the JPY futures. We have been in a bearish wedge and probing pretty key support. Our listeners of our daily show have asked our team how close we would be to intervention from the Ministry of Finance (MOF), or intervention rhetoric from the Bank of Japan in recent weeks. Our team has explained almost daily that we should not focus on one pair (i.e. USDJPY) but more of the JPY in general.

Today, with the move of the USDJPY above the 152.00 level, the risks have increased. But the fact that the 6J has reached support and currently breaking lower, the risks have increased quite a bit for intervention from the MOF especially if this broad-based moved picks up the pace lower. Key support is at the 127% extension at .006446 in the coming days, RSI is divergent so technical risks are high for a reversal too.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

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