USD/JPY continues to remain bullish, with buyers totally in control, despite the intervention by the Bank of Japan (BOJ) last month which sent this pair 5 cents lower. But, buyers came back pretty quick and pushed the price even higher. There were rummours of another intervention last week after the US CPI data but that was quickly bought up and such a move was neither confirmed nor denied by Japan – as you would expect given the market reaction.

Today we saw a new high at 149.30, before a quick retreat 60 pips lower. But, buyers came back again and pushed the price back up. So, the 100 SMA (green) in particular remains as support, where we opened the buy signal yesterday and again today.

Although, as we start to approach the 150.00 mark, expect traders to be more cautious in anticipation of another round of intervention by Japanese officials. There isn’t so much so a trigger point in terms of data this week, but the yen isn’t able to take in much comfort either amid the more positive risk sentiment – even if the USD itself is also not running hot. Below is the US industrial production report which came above expectations, so it’s slightly positive for the Buck.

US September Industrial Production and Capacity Utilization

• September industrial production 0.4% vs. 0.1% estimate
• Prior month -0.2% vs. +0.1% expected
• Industrial production 0.4% vs. 0.1% expected
• Capacity utilization 80.3% vs. 80.0% expected. Prior month 80.1% vs. 80.0%. Highest level since August 2018
• Manufacturing production 0.4% vs. 0.2% estimate. Prior month 0.4% vs. 0.1% previously reported

Better data from industrial production/ capacity utilization in the US in September. Capacity utilization equal the high from a few months ago which was the highest level going back to 2008.

USD/JPY Live Chart