Analyst: Japanese Yen Support Seems Fragile; Tokyo Chooses a Passive Strategy, Missing Out on Intervention Opportunities
2026-08-11 07:13:45
According to CoinMeta, as reported by ForexLive, analysts pointed out that Japan failed to follow up on recent joint interventions, especially after the weak U.S. employment data on Friday, by not taking advantage of the dollar's weakness. This approach reflects a passive rather than proactive strategy aimed at merely slowing down the rise of the dollar, rather than reversing the yen's multi-year decline. Analysts said that investors are still heavily shorting the yen, and it is estimated that the largest short positions in the yen since early 2024 have been established before the initial intervention. If Tokyo continues to remain restrained, analysts suggest that traders may continue to test this resolve, encouraged by Japan's fiscal constraints and the Bank of Japan's gradual tightening policies. Tuesday's Japanese holiday is seen as a potential window for further intervention attempts due to thinner liquidity. The technical levels for the USD/YEN pair, with resistance at 159.60 and 160.00, and support at 158.00-10, 156.70, and 155.00-20, could define any subsequent retests in Tokyo.
Source:Internet
This content is for market information only and does not constitute investment advice.
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