I referred to the wee dip for USD/JPY here:
There is some info in there that might be useful. About not trying too hard to pick a top. The trend is still your friend.
USD/JPY is back around 158.30 now. There is no fresh news, its best to expect swings for the yen, enhanced volatility ahead.
The really quick summary is:
- Sticky US inflation is going to keep the Fed higher for longer
- And thus the gaping US-Japan yield differential will continue to underpin USD/JPY
- Add in subdued Japanese inflation data
- And the dovish BOJ on hold again last week
Traders are concerned about possible Bank of Japan intervention, but so far we haven’t seen it despite the numerous warnings and ‘line in the sand’ hype every big figure we’ve risen.
This article was originally published by Forexlive.com. Read the original article here.