Forex Analysis : USD/JPY
Last week we said a dip to 81 or so looks very likely unless the greenback finds some support at very long last, and indeed the Yen hit 81.01.
• The Yen could easily move to 80 again, and for now might well be at levels that entice the Japanese central bank in to action once again.
• Indeed there are many central banks in Asia and Latin America either taking some interventionist action already or close to doing so, and we assume the current death of the dollar meltdown will make the Chinese even less willing to do anything more than allow the RMB to move in its very slow and gradual appreciation against the greenback.
• The Yen has no floor under it unless intervention plays out, and for the week ahead it is very likely to go to or very near the 80 mark according to the charts.