ICYMI – What to watch for in Japanese commentary for an approaching USD/JPY sell intervention

I posted earlier that the Japanese Ministry of Finance (and the Bank of Japan) would review the US CPI report for prospects for intervention on the JPY. If CPI surprises to the upside, this will spur USD/JPY buying and delay possible intervention to support the trend. yen (in margin):

• US CPI data due Wednesday, estimate ranges (and why it’s crucial to know them)

I’m probably exaggerating and the CPI will arrive more or less as expected and we’ll all go back to waiting for the next potential catalyst. But otherwise, here is some information that will prove useful if intervention to support the yen approaches:

To help you follow the escalation of verbal interventions that would occur before the actual “rate checks” and then the Bank of Japan’s USD/JPY sell-off, here is a guide:

• Clear signals to watch for in the event of imminent intervention by the Bank of Japan on the yen on the foreign exchange market
• Here’s what to watch for to warn of impending Bank of Japan (BOJ) intervention on the yen

• The 4 things to watch before the Bank of Japan intervenes on the yen on the foreign exchange market

I wrote these articles last year but they are still relevant today.

—

USD/JPY update. The big red lines are my attempt at technical analysis. It seems to me that the thing goes higher:

This article was written by Eamonn Sheridan at www.forexlive.com.

cnbctv18-forexlive