It has been reported that for the first time since 1998, the Bank of Japan has intervened in the currency market with direct transactions. The central bank operation has been confirmed by the bank's representative Masato Kanda, who stated "We have taken decisive action in the exchange market."
Economic Calendar
On Friday, at 13:45 GMT, the US PMIs are scheduled to be release. However, in most cases the market ignores this event.
Hourly Chart
In general, set technical analysis aside for now and watch the news flow and comments from the Bank of Japan.
USD/JPY daily chart's review
On the daily candle chart, the pair pierced the 145.00 mark and was heading to 1998 levels. It appears that the 145.00 level is where the central bank draws its line and starts to beat the rate down ignoring that it is manipulating the market.Daily chart
Before the US rate hike, on the Swiss Foreign Exchange, traders were 63% short as that amount of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 66% to buy the USD against the JPY.
On Thursday, after the manipulations, traders were 68% short and orders were 100% to buy.
In general, traders had recovered some of their previous losses that were suffered during the surge up to and above 145.00.