USD/JPY has continued lower, earlier testing aforementioned technical support at 98.00/05 before recovering to 98.30 at writing. I thought the support was “someway off”, how wrong was I. The problems with EBS have exacerbated the sell-off and although the system is said to be up again spreads are said to be wide. From a purely technical standpoint, support below 98.00/05 lies down at 97.55. This still smacks to me of a bout of profit taking and it’s probably too early to be looking for a substantial turnaround in the yen’s fortunes. There are still many negatives for the currency to overcome, not least very poor economic fundamentals; political turmoil and ongoing speculation of covert intervention.