With yesterday's foreign exchange intervention by the Bank of Japan, the 0.75% interest rate hike by the FOMC on the 21st and the maintenance of the monetary policy status quo by the BOJ monetary policy meeting on the 22nd are factored in,
The dollar/yen, which hit 145 yen, fell by nearly 500 pips (5 yen) at once.
The BOJ's foreign exchange intervention is said to be the first in 24 years, but it is still unknown how effective it will be.
When Bank of Japan Governor Kuroda verbally intervened in 2015 when the dollar-yen climbed to 125.5 yen, that was the turning point, and for several years it failed to surpass that high, earning it the nickname "Kuroda Line."
However, there are precedents such as the pound crisis, in which hedge funds triumphed over central bank intervention, so it is unclear how effective intervention will be.
At least, it is certain that the dollar-yen rise so far has been overheated from the point of view of the deviation rate from the moving average line, and it is a level that would not be surprising if it entered a cooling period once. Since it seems to have remained, it is speculated that a strong resistance zone will form around 145 yen and the topside will be heavy.
*If a 5-yen drop means that the buying position is cut off in the high price range, it will be difficult for the market to sell, so we still have to wait and see.
