The USDJPY had been climbing strongly especially as the price broke above the 140.50 resistance level to an overall high of 145.90. However, before the high of 145.90 was reached, the price had been resisted by the 145-round number resistance level.
On the 14th of September, as the USDJPY tested the 145 resistance level again, the Bank of Japan conducted a rate check, in apparent preparation for currency intervention. The signaling of the BoJ's intention to intervene in the Forex market saw the USDJPY trade lower towards the 142.50 support level.
On 22nd September, with the release of the BoJ monetary policy decision maintaining at -0.1% and failing to indicate an intervention from the BoJ, the USDJPY traded with significant volatility but eventually traded higher towards the 145.90 price level.
As the price hit the 145.90 price level, the BoJ announced that it had intervened in the foreign exchange market, to buy the yen for the first time since 1998, in an attempt to shore up the battered currency.
This saw the UDSJPY plunge to around 140.36 yen. However, as Finance Minister Shunichi Suzuki declined to disclose how much authorities had spent buying yen, whether other countries had consented to the move, and with no subsequent signs of further intervention, the Yen has almost completely retraced the reactionary plunge.
Currently trading below the 145 resistance level and the 78.60% fib level, the directional bias of the USDJPY is still heavily dependent on the strength of the USD and the overall volatility of the DXY. But it could be a while more before we see the USDJPY trade higher beyond the 146 resistance level.
On the 14th of September, as the USDJPY tested the 145 resistance level again, the Bank of Japan conducted a rate check, in apparent preparation for currency intervention. The signaling of the BoJ's intention to intervene in the Forex market saw the USDJPY trade lower towards the 142.50 support level.
On 22nd September, with the release of the BoJ monetary policy decision maintaining at -0.1% and failing to indicate an intervention from the BoJ, the USDJPY traded with significant volatility but eventually traded higher towards the 145.90 price level.
As the price hit the 145.90 price level, the BoJ announced that it had intervened in the foreign exchange market, to buy the yen for the first time since 1998, in an attempt to shore up the battered currency.
This saw the UDSJPY plunge to around 140.36 yen. However, as Finance Minister Shunichi Suzuki declined to disclose how much authorities had spent buying yen, whether other countries had consented to the move, and with no subsequent signs of further intervention, the Yen has almost completely retraced the reactionary plunge.
Currently trading below the 145 resistance level and the 78.60% fib level, the directional bias of the USDJPY is still heavily dependent on the strength of the USD and the overall volatility of the DXY. But it could be a while more before we see the USDJPY trade higher beyond the 146 resistance level.
