USD/JPY remains close to 3-month low, possible Intervention

The Yen status of safe heaven seems to be well consolidated into the markets participants mind and the Eurozone debt never ending crisis is fueling the situation. The BoJ efforts to contain Yen strength has resulted futile and the USD/JPY has continued falling from 78.30, Jan 25 high, to break 76.60 tough zone and reach levels close to 76.15, the lowest USD/JPY price since October 31, day of one of the latest BoJ interventions.

Yesterday the USD/JPY broke the 76.60 support and fall to trade in a small range between 76.15 and 76.40, despite comments from BoJ to fight the Yen strengthening, the pair seems to be trading in consolidation mode and set for further declines.

The Japan’s Finance Minister said yesterday that the Government is ready to act decisively against excessive and speculative currency moves if needed. Having posted the forth consecutive decline after the last week FOMC, the pair is getting closer to intervention levels, according to many analysts.

According to ACFX analysts team, USD/JPY will find next resistances levels at 76.66, ahead of 77.00 and 77.22. On the downside, support levels may act at 76.10, 75.88 and 75.54.


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