• Yen rises sharply before unwinding, intervention remains on radar of markets

• USD/JPY dropped from 157.25 to 155.69, on Monday and has since made recovery moves

• USD/JPY could climb further after last week's 'action', note the 155.50 golden ratio underpins

• 155.50 Fibo is a 61.8% retrace of the 152.28 to 160.72 (February to April) EBS rise

• Japan's Golden Week holiday, could cause wild swings in the yen owing to thin liquidity

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

Daily Chart


Correlation Chart


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