• USD/JPY has risen from 157.80 to 158.49, on Thursday, on the EBS

• Wednesday's close above the broken 157.53 Fibo was a bullish development

• 157.53 Fibo is a 61.8% retracement of 160.39-152.89 (Sept) drop

• There is scope for bigger gains through 158.62 Fibo, 76.4% of same 160.39-152.89 fall

• 'Yield gap' keeps USD/JPY on an upward trajectory, 160.00 is vulnerable

• However, Tokyo signals readiness to take joint action against a yen fall if needed

• USD/JPY and EUR/JPY tend to move in tandem, log correlations are high above +0.5

Daily Chart


Daily Chart


Correlation Chart

(Martin Miller is a Reuters market analyst. The views expressed are his own)