USD/JPY – “Mild” intervention?

In spite of dropping 100 pips from Fibonacci resistance at 87.50, the price came back to break it, and it is approaching 88 this morning. We might hear later that this rise was caused by a series of small or “mild” interventions, in order to weaken the Yen. The matter of intervention continue to be important in these areas, and since the Japanese government do not announce that they did for w a while after the intervention, there is no way to predict when and where they are going to do it. Technically speaking, the price is heading now towards the top of the channel that is rising from last week’s bottom. This top is at 88.18, and it is resistance of the day. If broken the Dollar will continue to show strength, and will target the top of the supposed wedge formation at 88.58, and may be then we will see a test of November 23rd top 89.17. Support is provided by the rising trendline from this week’s low, which is currently at 87.29, breaking it would target 86.72 & 86.28.

Support:
• 87.29: the rising trendline from Monday’s low.
• 86.72: intraday top from last week.
• 86.28: the bottom of the rising trend channel from last weeks bottom.

Resistance:
• 88.18: the top of the rising trend channel from last weeks bottom.
• 88.72: the top of the supposed wedge formation.
• 89.17: Nov 23rd high.