USD/JPY continues to try and retrace its backward steps

Since earlier this morning and the previous update on the USD/JPY, it has been trying to push higher and recover some of the heavy losses it has suffered since Thursday. Look, it has fallen a long way and the current rebound looks nothing more than corrective at this stage, a bit like it was on Friday, when it managed to get back above 160.50 before slumping again.

Of course it is doing that from a much lower level this morning and we look at the corrective technical levels, taken from the high last week at 163.99, to the low earlier today, at 155.23. That gives us a 38.2% corrective target of that 876 point fall, at 158.57 and as you can see, it is a long way south of reaching that still and there is no guarantee whatsoever it will. The risks of further BOJ and Fed intervention remain very much on the radar. The USD/JPY is right now at 156.77