Tokyo, Japan – Omo, the Japanese yen don dey carry heavy wahala as e dey weak no be small. As of Monday, USD/JPY dey flex for 156.56 level, and dem don turn market eyes sharply to how Japan officials dey yarn about intervention wey fit happen if the yen no sharp up soon.
Last Sunday, Takuji Aida, wey dey advise Prime Minister Sanae Takaichi, don drop bombshell say Tokyo dey ready to jump into action if yen wahala begin dey affect economy. Na wetin dem talk wey make people dey shiver, as everybody dey fear say intervention go soon show face. Bank of Japan Governor Kazuo Ueda and Finance Minister Satsuki Katayama don also join for this gists.
As things stand, analysts don dey mark 160.00 as level to watch. That one na where market fit see serious action because before, na so dem don act to save the yen. Yen don bin dey sell off since last week when dem bring out new cabinet’s big stimulus package wey cause panic about how Japan dey handle their money matters.
The yen drop reach ten-month low last week. All these shakara dey happen because Japan dey run ultra-loose monetary policy wey dey make the currency weak. On top of that, technical analysis dey suggest sey USD/JPY don complete downward impulse to 156.19, now e dey form one kind range for 156.55. If the pair fit break higher, e go experience small correction up to 157.15.
Now, on top H1 chart, e look like say the pair don already complete downward wave to 156.20. As we dey watch, dem dey expect another upward move wey go target 157.13 before downtrend resume carry our leg go 154.44. So, this one dey suggest say despite the small rally coming, bear market still dey follow the dollar like shadow.
In summary, the yen dey catch cold from all the policy wahala and verbal intervention from decision-makers. E be like say market fit see some action as yen dey balance between fundamental pressure and heated official statements. But no be to fear; we fit still see one or two small rallies, but the main zone to watch remain that 160.00 level as intervention dey loom large.
Every trader just dey pray say yen fit bounce back before e reach harm’s way, but as e be now, caution dey reign supreme for this currency market.
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