Inevitably, official intervention becomes a Red Flag to Bulls wanting to test the possible coordinated intervention.
The Yen is lower against all but the Euro, as intervention speculation is beginning to heat up. In addition, the Nikkei closed higher overnight, after experiencing a few days of losses.
Japanese GDP figures are due out at the beginning of next week, and if they come in weaker, could induce more speculation of currency intervention.
H4 USD/JPY
Daily USD/JPY
TECHNICAL ANALYSIS
On H4, We observe that the PA tried to break the resistance near 86.20 three times but failed., Signalling a high probability to roll over from here towards its next lower target soon.
On weekly chart, 84.82 seems to be a strong support, breaching it successfully shall send this pair to roll over towards the 80.55 which is the 1,270 Fibo Extension level.
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