What a dish... USD/JPY fall down after Japanese unemployment rate surprisingly rose to 4.6% in December, slightly above the 4.5% market expected. However, preliminary data showed an increase of 4.0% in the industrial production in December, and a contraction (albeit smaller than expected) of 4.1% over the last twelve months (-5.0% exp.). This condition makes Bank of Japan watching closely to take the advantage action
This USD/JPY is posting its fourth consecutive decline after the Fed announcements last Wednesday, and according to many brokers analysts, is getting closer to possible intervention levels, as denoted by the “warnings” of the BoJ and MoF officials. If Bank of Japan do some market intervention, it will be good
So by the way the cross is retreating 0.09% at 76.30 at this moment, facing the next support at 76.00 (high Oct.28) followed by 75.31 (historic low Oct.31) and then the psychological levels at 75.00 y 74.00
On the upside, resistance levels are located at 76.65 (prev. hourly sup now res) ahead of 76.78 (high Jan.30) then 77.28 (low Jan.26) and 77.37 (MA55d). Keep watching guys to see how the actual treatment from Bank of Japan to handle this condition
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