The Japanese yen fell against the dollar in today’s session by about 1% and traded around 149JPY after the suspected intervention by the Japanese Government which brought the yen from 152 JPY to 146 JPY.

• Investors are monitoring the Bank of Japan’s monetary approach ahead of its meeting this week which pressures the Japanese yen for several months.
• The BOJ sticks to its ultra-easy monetary policy which should boost the economic recovery while the Japanese yen decreased its value against the dollar by about 30% this Year.
• The US Federal Reserve keeps up with its aggressive approach to hiking interest rates which pressures the yen additionally.
• According to reports, the government spent about $30 billion to support the yen after it sank towards 152 JPY as Friday’s price action suggests intervention.
• Prime Minister Fumio Kishida suggested that the government will take appropriate action to counter the currency moves but did not confirm the prior week’s possible intervention.

A foreign exchange intervention is a monetary policy tool that involves a central bank taking an active, participatory role in influencing the monetary funds transfer rate of the national currency.

Investopedia

The daily interval found some supportive dollar buyers around the Quarter’s developing VWAP as the market closed on Friday with an outside bar by the mentioned and possible intervention to it, concluding a potential change in the market structure from dollar side bullishness to a mixed-balanced to bearish behavior, technically.

The hourly interval keeps its resistance and supportive stance of the Yen around Friday’s VWAP close level for the moment while dollar buyers emerged around the week’s lower value extreme, targeting the swing highs for possible absorption behavior. A balanced price range between 150 JPY and 147 JPY might establish in the upcoming days.

1 Month Ago

Long-term calculations point towards 155 JPY in a three-Quarter perspective while the intra-day framework seemingly points a more likely mixed behaviors for the moment.

(Click on image to enlarge)

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