Will Japan intervene or not? This is certainly not ideal when considering European trading, where liquidity conditions will start to improve. And this will be even more true when American traders enter the fray later. Officials may plan to wait until the BoJ sends a message on Friday, but that will still be at least two days away.
For now, all other major currencies aren’t doing much and traders will likely sit idly by watching what happens next with USD/JPY before reacting to anything. The Aussie is still up slightly from where it started, but AUD/USD remains capped for now, as seen here.
It certainly takes a lot of courage to participate in a yen trade right now and I wish you good luck if you embark on this adventure. Personally, the risk of intervention is a bit too much for my liking, so I would stay away. And I’m sure the majority will also watch what happens next.
I think we could slowly see prices climb a bit higher until reaching 155.00 in the coming hours. There could also be some profit taking when we reach this level, but if there is an overshoot, that could be the event that invites Japan to intervene. But we’ll see.
cnbctv18-forexlive
