USD/JPY Price Analysis: At a crossroads, traders are cautious on the BOJ, will they or won’t they?

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  • USDJPY rises towards BOJ intervention territories.
  • The pair is in no man’s land between 148.70 and 146.20, the risks are balanced.

USDJPY is up on the day, 0.26% to current 148.30 at time of writing, trading between 147.11 low and 148.45 so far. Meanwhile, traders remain vigilant for any further official intervention to prop up the battered Japanese currency. The overall picture for USDJPY is mixed from a daily perspective as price trades between no man’s land, 148.70 and 146.20:

USDJPY daily chart

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As illustrated, price is wedged into a coil between those levels mostly with a current bias to the upside on a break of 148.70. However, as the short-term charts below show, there is the threat of intervention from the Bank of Japan, BoJ.

USDJPY H1 Charts

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The price is rising towards previous highs and this raises the prospects for Bank of Japan/MoF intervention. Therefore, since the price is at the tail end of the previous trend, there is prospect of a downward reversal, as follows:

A break of structure, (BoS) has already occurred, so failure below current resistance at 149.00 could see a significant drop below 147.00 to target 145.00.

Source: Fx Street

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