Yesterday, there were rumblings of BOJ verbal intervention. The 50% of hte move up from June 1 low comes in at 79.132 and the 200 day MA comes in at 78.999 today. This is a key support area for the pair. A break below would look toward the 78.78 level. Earlier today the BOJ increased the asset purchase program by 5 trillion yen (to 45 trillion from 40 trillion) but it was considered a “technical move” and not a “monetary easing”. So the USDJPY spiked higher but soon fell back down.
On the topside now, I will be eyeing the 100 bar MA on the 5 minute chart below for bullish/bearish clues. The price moved above on the better than expected Initial Claims data today but quickly moved back lower. A move back above the line should be an indication the downward momentum is fading.
