Trade the lender of Japan Intervention PlansPosted by Bynum Haastrup on June 1st, 2021 The Bank of Japan made it clear that it is ready to intervene in the markets in order to curb the Yen strength. This may translate into a trading chance of the USDJPY when in conjunction with Technical Analysis. The Bank of Japan Intervention was one of the most interesting events in the currency markets over the last few weeks. THE LENDER of Japan implied that they will intervene (sell the JPY) if the price starts to fall below 85.00. The cost of USDJPY is around that area now, so if it creates another down leg then the BOJ could potentially intervene again. This should cause the price to post a dramatic rise. The BOJ intervened so that you can respond to concerns about the yen's rise. get more info occurred on last Wednesday for the very first time in six years to knock the currency lower. Bank of Japan money market data indicated that the yen-selling could have amounted to1.86 trillion yen. It is a record amount that proven to the market that the lender of Japan means business. This should definitely have an impact on the market's expectations concerning the Yen. Yen strength is hurting Japan's exports, which are the main driver of japan economy. From the technical perspective, the pair has posted a pullback and is currently trading around a key support level denoted by Support S1 around the 84/84.50 area. Trade Signals is a buyer around these areas targeting the Resistance R1 area, around the 88.00 area.Like it? Share it! More by this author |