BOJ governor Kuroda crossed the wires today, saying that they are closely watching FX market moves and that they will take steps in FX market if necessary.
Sporadic direct intervention by the MOF or rates checking calls to dealers cannot be ruled out.
We are of the view that intervention can only provide temporary relief. All spikes to provide buying opportunities.
Charts are biased lower. Tests of 108.25,108 and then 107.60 levels likely.
Pair finds strong support at 107.60, breaks below needed for further downside.