By ForexMansion.com
This pair has been extremely volatile over the last 48 hours. As you can see, today’s action was basically an undecided bar. There are differing schools of thought right now involving the Japanese yen, and none of them seem to be winning out. On one hand, you have a large group of traders that feel that it is only a matter of time before the Bank of Japan intervenes in this currency pair. On the other hand, you have the large group of traders that thinks that the Japanese corporations are going to be repatriating their currency, thus driving the value up, and this pair down.
The truth probably lies somewhere in the middle, and has not been shown for all to see yet. It should be noted however that we are still below the 80 handle, and as long as we are there is probably a sell bias to this pair. Inexperienced traders are revised to avoid this pair at all costs, until we get some kind of stable marketplace for it.
Because of the ever looming threat of intervention by the Bank of Japan, this pair will probably continue to be very difficult to trade. An intervention by the central bank would probably push this pair up 200- 300 pips based upon previous interventions.
