In European trade on Wednesday (Oct 26), the/low recovered to trade at 148.29, up 0.28%.
Generally, policymakers have the greatest impact on markets when their actions and goals are open and transparent, so it is odd that they are refusing to confirm intervention, Commonwealth Bank of Australia strategist Joseph Capurso wrote in a client note.
The refusal to confirm the intervention may be an attempt to keep traders guessing and keep USDJPY down.
Regardless of the strategy, we still expect USDJPY to recover in a few weeks following the end of Japanese intervention. “Pepperstone:
Usdjpy may first fall to 110 before regaining gains and testing resistance near 115 although USD traded slightly above Monday’s fresh 32-year high of 149.08 to 149.38 in JPY crosses (New York), the recent loss of upward momentum could limit prices below 149.50 and generate a much-needed correction,
Below 148.89(New York low) rises to 148.42/45.
