• USD/JPY has seen a 159.18-159.48 EBS range, on Thursday, trading within the thick daily cloud

• The daily cloud currently spans the 158.92-161.42 region

• Spot stuck below 159.59, 50% retrace of 163.99-155.20 intervention fueled slump

• The long tail on the Wednesday candlestick points to a rejection of the downside

• However, beware USD/JPY and EUR/JPY usually struggles in August

• USD/JPY and EUR/JPY tend to move in tandem, log correlations are high above +0.5

Daily Chart


Correlation Chart


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