Yen-tervention continues to keep things more riveting on the week

That’s twice already now that they’ve come in to support the yen currency this week. USD/JPY saw a sharp dive from 157.50 to 153.00 before being bought back up to just below 156.00 currently. Here’s a look at the near-term chart:

As much as Japanese authorities are trying to push down the pair, dip buyers are holding steadfast to their conviction for the most part. Price action has been quite challenging in that regard. The clear line in the sand right now is the 160.00 level. However, Tokyo clearly can’t rest on their laurels if dip buyers continue to contest for a higher move so quickly.

The pair is still down roughly 150 pips from before Japan stepped in. But from the lows earlier, it is up roughly 300 pips. As Eamonn said earlier, it depends on how you want to look at it.

From a purely technical point of view, a daily hold above 155.00 will continue to give dip buyers some added conviction for now. But if they overstep, you can bet that Japan is quite ready to step in if need be. At least for now, they’re only choosing to do so when they can get a bang for their buck i.e. low liquidity periods.

The US jobs report tomorrow will be the next big one to watch. If that doesn’t help to keep a lid on things, there’s a chance we could see Japan step in again before the weekend.

This article was written by Justin Low at www.forexlive.com.