Will Japan intervene or won't they? It's definitely not ideal as we look towards European trading, where liquidity conditions will start to pick up. And even more so when US traders come into the fray later. Officials might be thinking to wait for the BOJ to send a message on Friday but that is still at least two days away.
For now, all other major currencies aren't doing much and traders are likely to sit on their hands in watching what happens next with USD/JPY before reacting to anything. The aussie is still up slightly from earlier, but AUD/USD remains capped for now as seen here.
It definitely takes a lot of guts to be in any yen trade at the moment and I wish you the best of luck if you're taking that on. Personally, intervention risk is something a little too much for my liking so I'd stay sidelined. And I'm sure the majority will be watching as well to see what happens next.
I reckon we might slowly see price creep a little higher until touching 155.00 in the hours ahead. There might be profit-taking as well when we get to the figure level but if there is any overshoot, that could be the event that invites Japan to step in. But we'll see.
