USD/JPY had an interesting day on Monday. The Bank of Japan intervened in the market, driving prices much, higher. The top of the move was 79.50 or so, and it should be noted that the 80 level wasn’t even touched.
The move was also mentioned as being unilateral, and as such – it could be very short-lived. The fading of this move has already started. The pair cannot be bought now, it has simply moved too far too quickly. The selling of it can be done, as these unilateral moves tend to be selling opportunities, but the selling move should be carefully considered, and perhaps done with a smaller than usual position.
Written by FX Empire