USD/JPY backs away from the 145.00 mark

<p>I would argue that a combination of profit-taking and intervention fears is what is contributing to the latest descend in USD/JPY today. The idea that 145.00 could be the level where Japan steps in to intervene in the currency market is so far enough to put off traders from chasing a much higher move after the gains since mid-June.</p><p>Of note, the drop back under 144.00 today puts sellers back in control in the near-term but I would expect buyers to hold some ground ahead of the US non-farm payrolls tomorrow.</p><p>But there is a pocket of space between 140.00 and 144.00 now that could lend itself to a sharper retracement, so just be mindful of that.</p><p>For today, there are also large option expiries for the pair at 144.00. So, that could keep price action thereabouts before rolling off.</p>

This article was written by Justin Low at www.forexlive.com.