Wednesday, 15 Sep 2010

Forex News: BOJ Intervention Lifts USD/JPY towards 86.00

After pushing the USD/JPY above 85.00, Japanese bank authorities said they were prepared to extend the currency intervention into the U.S. session. With the dollar continuing to climb against the yen into New York trading, making a 3% gain, traders said there was so far little evidence to suggest for certain that Japan had been active in currency markets into the North American session, though investors were on guard for another round of yen selling.

After falling to a 15-year low Tuesday, the initial barrage of yen-selling orders hit the market early in the Asian session; it was followed by bursts that pushed the USD/JPY pair above 85.00. The greenback traded at 85.63 yen from 83.08 by morning trading in New York.

With an uncertainty about whether the Bank of Japan (BOJ) will continue selling the yen, investors are fearful of putting short orders into the pair, helping to further the same buy initiative set off by the BOJ and extending the gains of the pair. The next upward target appears to be around the 86.00 price level.