BOJ Intervention Fails to Break USD/JPY Uptrend, ING Says
A suspected Bank of Japan intervention briefly knocked USD/JPY down 3%, but the pair rebounded nearly 2% as the underlying trend proved resilient, ING analyst Chris Turner notes.
USD/JPY experienced a sharp 3% decline on reported Japanese intervention, only to recover almost 2% of those losses soon after, according to ING’s Chris Turner. He describes the price action as a rollercoaster that highlights how intervention can slow but not reverse the dominant trend.
Turner points out that coordinated involvement between the Federal Reserve and the US Treasury was a key factor in January’s market dynamics. However, he now sees the narrative as having moved on, implying that the current intervention may lack the same level of concerted support to alter the broader path.
The analysis suggests that while Japanese authorities can create temporary volatility, the fundamental drivers behind USD/JPY strength remain intact for now.
Source: FXStreet Forex News