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Something potentially important to note about the USD/JPY and Japanese reserves

There was some data out late yesterday evening that should have been conveyed to you earlier, but here it is now. The thing is; this has not really changed the dynamic today, so the late reporting of it is not detrimental. Well, the amount of Japanese reserves actually fell back to $1.279 Trillion in April from $1.90 Trillion in March. So, if we assume that data is accurate and covers the very end of last month, it is worth noting that it was on April 29 that the USD/JPY dived from 160.17, to 154.54 on the premise the BOJ was selling the dollar. Of course it is not always possible to extrapolate intervention from this data, but if that is what reflects the change, then it implies the BOJ might have sold as much as $11 billion that day. If that is the case, then it is well short of the $30 billion that was suggested by some analysts. Anyway, food for thought folks. Meantime, the USD/JPY has continued to edge its way towards that noted Fibonacci level at 156.01. The high seen so far has been set at 155.95. It is currently trading at 155.90 
 

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