Japanese Yen Technical Outlook: USD/JPY Plunges Toward Critical Support

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Japanese Yen Technical Outlook: USD/JPY Multi-Timeframe Analysis

Japanese yen intervention risk is back after Tokyo ran a rate check, the step that usually comes before Japan acts in the market. Michael Boutros, StoneX Media Senior Market Analyst, walks through the Japanese yen across weekly, daily and four hour charts. A rate check is the procedural step Japan typically runs before intervening, and it landed alongside Bank of Japan board member Takada saying policy should stay nimble and data dependent, which has lifted expectations for a rate hike this month. The Federal Reserve stays focused on inflation after Jackson Hole, and fed funds futures have repriced since a weaker than expected ADP employment report. Tomorrow's U.S. nonfarm payrolls release is the next test.

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Written by Michael Boutros, Senior Technical Strategist

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