USDJPY getting uncomfortably close to 152 (again)

We are so close to 152 (again) on the USDJPY.

With all the recent rhetoric and jawboning we need to keep a close eye on this one.

There is no guarantee that they will intervene when we get there, but they would have some explaining to do if they allow it to weaken past 152 after all the recent push back.

If CPI comes in much lower than expected tomorrow, the data can do a lot of their work for them and should keep USDJPY away from 152 in the short-term.

But should we get an upside surprise in CPI, since we are so close to 152 the risk of intervention on an upside surprise is big risk.

This article was written by Arno V Venter at www.forexlive.com.