The U.S. dollar looks set for a big recovery against the Japanese yen as foreign exchange traders grab the chance to pick up a cheaper USD/JPY in the wake of the latest round of intervention by the Japan authorities.
The widening interest rate chasm between the Federal Reserve and Bank of Japan seems to make yen intervention futile.
Friday's to buy yen after the currency hit a 32-year low near 152 to the dollar prompted USD/JPY to slide to 144.50 from 151.94, before it bounced back to 148.46 on the EBS.
The yen continued to whipsaw on Monday, amid talk of , with USD/JPY trading a massive USD/JPY 145.28-149.70 range in the space of 11 minutes in Asia.
USD/JPY will likely see a near-term recovery above the 150.18 Fibo, a 76.4% retracement of Friday's drop.
EUR/JPY looks set to climb with USD/JPY.
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