Post #15719

192 Pip Candle on USD/JPY The yen caught a sudden bid early Friday, snapping higher against the dollar with intervention risk firmly back on the table as USD/JPY pressed into sensitive territory near 160. The move was violent — a single 1-hour candle printed a 192-pip wick — catching the market off guard as London opened. So did the BoJ Intervene?? Traders speculated Japanese authorities may have conducted “rate checks,” a common signal that intervention is being considered. With the BOJ having just held rates steady and positioning heavily long USD/JPY, the move likely triggered a cascade of stop-losses. Whether this was positioning stress or a precursor to direct action should become clearer when BOJ flow data is released next business day, aka on Monday. If BoJ intervention is confirmed, we can expect some follow through. Usually the initial intervention is short-lived with momentum following shortly after. Trade safely everyone! - Alan