USD/JPY had a negative session on Tuesday as traders continue to fade rallies in this pair. The 78 level continues to show itself to be resistive, as even the interventions can’t overcome it for any real length of time. The pair is currently being supported by the Bank of Japan in the form of interventions from time to time, even though the correct direction has been to sell over time. The rallies are to be sold, but only down to about 76 as the Bank of Japan gets involved below that level. Buying can’t be done until we close over the 80 mark on a daily chart.
Written by FX Empire