As the market feared, Japan once again intervened in financial markets at the close of trading last week after doing so in the previous 4 weeks.
The situation has actually been a factor that made investors cautious a few weeks ago with the fall of the Yen against the US dollar continuing until it reached the ¥150.00 level.
Although previously the market understood the loose monetary policy maintained by the Bank of Japan (BOJ) as an economic stability strategy, the fall of the Yen to the lowest level since 1990 against the US dollar became a matter of concern.
On September 22, the government intervened when the price reached ¥145.90, but the Yen's rise did not last long as the US dollar continued to exert pressure.
Last Friday, it can be observed the price movement on the chart of the currency pair USD/JPY when the price peaked to a high level of 151.90 inviting once again intervention by Japan.
The last session of last week saw the price plummet from that height until it reached the level of 146.00 as a result of the intervention that took place.
The volatile movement of the Yen continued at the opening of trading earlier this week as investors witnessed volatile movements on the USD/JPY chart at the start of the Asian session yesterday.
Jumped to 149,700, plunged to 145,500.
The price movement started to subside in the European and New York session yesterday at around 149.00, but watch the price move below the Moving Average 50 (MA50) barrier for a bearish trend signal for the price.
For the expected price drop again, the level around 147.00 or 145.900 is seen to be an interesting focus.
Meanwhile, if the price increase happens, the 150.00 level is seen as an initial resistance before the continued increase will reach back to the height of 151.900 reached last week.
However, if prices remain bullish, investors will remain alert for Japanese intervention at any time in the market.
Meanwhile, the BOJ policy meeting will also be in focus this Friday.
