USD/JPY saw a brief spike above 115, hit 115.25 posting a good 70 pip spike, markets suspect possible BoJ intervention.
- But the pair ran into fresh offers at highs, dragging it back below the 115 handle, currently trading at 114.76 levels.
- Yen appreciation past the 115.00 is undesirable, however fighting the market could prove to be a suicidal proposition for the BoJ.
- Japan's economic minister Ishihara was on the wires over the last hours, commenting on the Japanese economy.
- He said that Japan's economic fundamentals have been recovering and hope BOJ takes appropriate dialog with markets, appropriate action based on econ, price situation.
- Tokyo's Nikkei Average is extending downside on the day, down around 2.02 pct as we write.
- Technicals indicate further downside for the pair, immediate support is seen at 113.85 (Nov 10, 2014 low) and resistance at 115.85 (Feb 10 highs).
Recommendation: We would sell rallies around 115 levels, SL: 115.85, TP: 114.25/114/113.85
