USD/JPY is holding up pretty well after official rhetoric this morning raised the spectre of possible BOJ intervention to weaken the yen. Pairing sits presently at 95.70.
Japanese Vice Finance Minister Sugimoto warned that Japan is watching forex moves carefully and does not want exchange rates to have a negative impact on the economy.
Despite the rhetoric, it would be surprising to see the BOJ in buying USD/JPY at current levels.
At the same time general risk sentiment isn’t in too bad shape (S&P futures up 9 points, oil up etc) and this will be undermining the yen a little.
Technical supports at 95.60/65 and 95.35, resistance at 96.00/05 and 96.20.
Sources report fairly decent sell orders lined up at 96.00.
