USDJPY US Dollar/Yen Chart Shows Third Currency Intervention for 2011

The chart highlights the three yen currency interventions this year.

In March 2011, the BOJ and G7 leaders performed a coordinated intervention to weaken the yen which moved the dollar/yen from 76 to over 85 in less than three weeks. 

In August 2011, the BOJ acted alone with currecy intervention and popped the dollar/yen from 76-ish to over 80 in three days time, but price retreated quickly nullifying the intervention.

Now, in late October 2011, the BOJ acts alone again, although more details are needed concerning how the intervention is occurring, and the dollar/yen spiked to 79.5 overnight and is now printing 77.915 last print.

Note how the first two interventions failed; the yen continued to strengthen (dollar/yen lower). Is the third time the charm? Positive divergence in the charts at least favor the dollar/yen to build a basing pattern here on out and are set up to favor sideways to sideways up for the dollar/yen for the weeks ahead, thus, the third time may be the charm. Also note the falling wedge profile in the chart above which is a bullish pattern, highlighted in the dollar/yen chart a few days back. Use the search box above (type in 'dollar/yen'; chart is October 25th) or scroll back to previous posts for that chart.