• USD/JPY drops from 159.46 in Asia, briefly to 158.60 in London, before rebounding

• Some nervousness still over FX intervention but most say unlikely now

• Scope is growing for a bigger rise and break above the 159.59 level

• 159.59 is a 50% retrace of 163.99-155.20 intervention fueled slump

• However beware USD/JPY and EUR/JPY usually struggles in August

• USD/JPY and EUR/JPY tend to move in tandem, log correlations are high above +0.5

Daily Chart


Correlation Chart


(Martin Miller is a Reuters market analyst. The views expressed are his own)