USD/JPY fell hard during the Friday session as traders piled into the Yen. The USD in general fell in value around the world as Bernanke stated in his Jackson Hole press conference that the US economy didn’t warrant any more stimulus and actually seemed to have changed the outlook to slightly positive. Also, he did mention that the Congress and Administration were responsible for growing jobs and fostering a better business environment in the US. Because of this, it is possible that traders bought the Yen as a sign of a lack of faith in the US Congress. The Bank of Japan is willing to step in and support this pair, and as such – we still do not sell it. The pair gave us a little bit of hope for longs Thursday, but that has since been dashed. We are staying out of this market at the moment.
Written by FX Empire