USD/JPY Decline Offers Buying Opportunity

The USD/JPY pair experienced a decline against the Japanese yen due to intervention from the Bank of Japan. This event presents a buying opportunity, as the 200-day EMA has held as support.

The price plummeted down to the 158 yen level before recovering, and Christopher Lewis is 'perfectly comfortable adding to this position.' This marks the third or fourth time the Bank of Japan has intervened in recent times.

Lewis notes that the interest rate differential continues to favor the US dollar, with rates in America significantly higher than those in Japan. He believes that the trend will not change based on a single action from the Bank of Japan and sees this as a buying opportunity due to value.