It may be a Japanese market holiday today but it’s always best to be reminded that the forex market doesn’t sleep.
It may be a Japanese market holiday today but it’s always best to be reminded that the forex market doesn’t sleep. Amid thinner liquidity conditions, it seems that the MOF has instructed the BOJ to step in once again today.
The latest comes as USD/JPY claws its way back up to above 157.00, before being hit with sharp selling. Looking at the chart, it seems like we’re slowly figuring out the pain threshold for Japanese officials for now. The Friday drop also occurred after the push back above the 157.00 level but towards the end of Tokyo trading.
Interestingly enough, the drop seems to be met with strong bids closer to the 155.50-70 region. And that has been the case since Thursday last week already. Even with a reported $35 billion intervention spending at the time and likely more on Friday as well as today, Japanese officials are finding it tough to break this market.