• USD/JPY has edged higher from 157.56 to 157.89, on Wednesday, EBS data shows

• It continues to trade within the daily cloud that currently spans the 156.29-158.82 region

• It has broken above the kijun line, currently at 157.86, a close above would be bullish

• The kijun line is the midpoint of the last 26-day trading sessions

• Verbal warnings are unlikely to stop a USD/JPY recovery

• However, according to ex-BOJ chief Kuroda, the yen unlikely to fall below 160 per dollar

• 30-day log correlation between USD/JPY and EUR/JPY is above +0.5 (pairs moving in tandem)

Daily Chart


Correlation Chart


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