USD/JPY is stabilizing after the strong sell-off, which was caused by BoJ intervention. At this point, the key question is whether Bank of Japan is ready to continue interventions next week.
While yesterday’s price action has surely hurt some speculators, major funds playing against the yen have likely maintained their positions. The difference in yields between U.S. and Japan is a strong bearish catalyst for the yen, so Bank of Japan has more work to do if it wants to break the bullish trend in USD/JPY.
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