💹USD/JPY Tends to Move By 5Bf On FX Intervention: Cable FX Macro
- Rosbel Durán
- Apr 9, 2024
- 1 min read
We do not have a decent sample size for Japanese authorities' FX interventions, but we can look at the 2022 rate checks and Q3/Q4 operations
The USD/JPY quote has reacted to a mere BoJ FX rate check with no intervention. A September 2022 yen rate check saw the yen rise 2 big figures
Following, a dollar breach of 145 pushed authorities into the FX market, and the dollar-yen cross moved by more than 5bfs on the day. That was about 4 times the short-term daily ATR
The chart below shows the USD/JPY reaction to the October FX intervention. USD/JPY moved in a range of a little more than 5bfs from 152.0, levels close to where the yen currently trades
We cannot predict if the operation will work or not but if traders wait to get an entry at better levels from 152.0, then 151.0 or 150.0 might not be attractive enough
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