We are approaching early evening in Tokyo and there has been no significant verbal reaction from Japanese authorities today. Typically, you would see them come out in droves to try to recapture USD/JPY. But amid today’s silence, they may be hoping that the calm will be a reason for traders to be cautious. And at least for now, it’s working.
USD/JPY has been hovering around the 154.85-92 region for almost two hours now. There was a brief drop to 154.76 earlier, but the value was quickly bought back and we are back in this nervous range. All eyes are on whether or not Japan will intervene if the price crosses the key line in the sand above the 155.00 mark.
And that keeps the markets as a whole relatively quiet on this day. The dollar is stable, maintaining slight gains against the euro and the pound sterling. Meanwhile, European indexes are barely higher, with S&P 500 futures currently up just 0.2%.
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