USD/JPY's Downside Risk Receding Despite Intervention Risks

By Martin Miller — May 11 - 03:21 AM

• USD/JPY has seen a 156.48-157.17 EBS range on Monday. It remains stuck within the daily cloud

• Spot failed to close under the cloud, which spans 156.29-158.68, repeatedly in recent trading sessions

• Japan's intervention success will likely be fleeting, those repeated failures underpin USD/JPY

• USD/JPY and yen crosses are better bid but intervention watch continues

• Japan bets on Washington, BOJ for extra punch in yen battle

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

Daily Chart

Correlation Chart

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

Source:

London Stock Exchange Group | Thomson Reuters

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