• USD/JPY has slipped from 159.40 to 158.85, on Monday, according to EBS data

• Yen is stronger as traders pare bets on Fed rate hike

• Downside likely limited due to the long-tails on Wednesday and Friday candles

• A break and close above the 159.60 level would be quite a bullish development

• 159.60 level is a 50% retrace of the 163.99 to 155.20 recent intervention induced drop

• Beware, however, USD/JPY and EUR/JPY usually struggles in August

Daily Chart


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