USD/JPY – Turns positive, did BOJ lend helping hand?

Omkar Godbole FXStreet Contributor

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).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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