USDJPY: Trading range and intervention risks – TD Securities

💡 DMK Insight

The US Treasury’s intervention in the FX market is a game changer for USDJPY traders right now. With the Ministry of Finance actively engaging in currency stabilization, we’re likely to see increased volatility in USDJPY. This could lead to significant price swings, especially if the intervention is perceived as a signal of broader economic concerns. Traders should watch for key resistance around the 150 level, as breaking through could trigger further selling pressure. Conversely, support at 145 is crucial; a bounce here could offer a buying opportunity for those looking to capitalize on potential rebounds. Keep an eye on Treasury yields as well—rising yields could strengthen the dollar further, impacting USDJPY dynamics. But here’s the flip side: if the market views the intervention as a sign of weakness, it could lead to a bearish sentiment shift. This situation is fluid, so monitoring sentiment around the intervention will be key. Look for any statements from the Treasury or the Ministry of Finance that could provide insight into their strategy and intentions moving forward.