Wednesday October 19, 2022 - 12:24:54 GMT
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Inside Forex: What is the USDJPY Level for the BoJ/MOF to Truly Defend?
The following was sent to me by a long-time and highly respected Global-View member in response to my blog post, Inside Forex: Will USDJPY 150 Be Tested? I never ignore what this seasoned trader tells me although logic says when a currency pair is trading at 32+ year highs, trying to predict a top is pure guesswork. Here is his view:
The level for the BoJ/MoF to truly defend is USDJPY 160-162. The 145 level was stupidityand yes 150 is psychological but only in traders’ minds not in CB's.
I have also learned on more than one occasion that betting on a central bank to defend a specific level can be a painful or in some cases a fatal trade (note the Swiss National Bank-inspired flash crash from January 2015).
USDJPY weekly chart (courtesy of The Amazing Trader). Note, any attempt to form a top, despite intervention, has been short-lived.
Jay Meisler, co-founder, Global-View.com
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