USD/JPY 30 mins
USD/JPY is back down to the intervention lows.
It’s been a crazy day and week for this pair as it’s traded in wide ranges and with huge swings due to intervention and dip buying.
The market is acting like it’s:
1) Scared of more intervention
2) Worried about non-farm payrolls and unwilling to buy the dip
3) Taking down exposure in crowded long USD/JPY trades
To some extent, all of those work together but the change in trend from buying the dip in early Asia towards selling the pair is stark, and it doesn’t rule out some kind of stealth intervention.
For me, these levels offer a compelling entry point with a stop just below the figure because nothing has changed in the fundamentals.