The talk in the market is that some of the bigger hedge funds are buying this pair at 84.50 and just below. As we’re currently just 5 pips away from there, these stories look set to be tested. Whether they are booking profits on existing shorts or initiating longs on the possibility of BoJ intervention, I really don’t know, although I suspect the latter.
From a chart perspective, a break below 84.30 should initiate a test of last week’s low at 83.60, below where we can expect more stop-loss sell orders.