• USD/JPY buoyant as yen long grew big before BOJ's dovish hike, but intervention threat persists

• Reported "rate checks" helped a large upper shadow to be formed on Friday's USD/JPY candle

• Spot failed to sustain Friday's break above 157.53 Fibo, 61.8% retrace of 160.39-152.89 (Sept) fall

• However, the continued trading above the 156.64 level keeps the technical bias on the upside

• 156.64 level is a 50% retrace of the same 160.39-152.89 (EBS) drop

• 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)