BOJ Intervention Speculation Spikes as Yen Plunges Against Dollar

The yen has made a sharp move against the dollar, sparking speculation about possible intervention by the Bank of Japan (BOJ). The USDJPY pair plummeted down by another 100 pips, reaching as low as 160.87. This sudden drop in value is prompting some to wonder if the BOJ has indeed launched a second round of intervention.

The sharp move has brought the price level close to the July low at 160.446. If it breaks below this level, it could target the 100-day moving average at 160.107, which was last breached on May 14. Below that lies a swing area around 159.733 and the midpoint of the trend move at 159.503.

The BOJ's possible intervention comes as the yen has been weakening against the dollar for months, exacerbating the cost-of-living impact on Japan. The BEA reported that personal income increased by $54.9 billion in June, but this news did little to halt the downward trend of the USDJPY.