USD/JPY holding ground near 148.80 after rumored BoJ currency intervention

• The USD/JPY sunk to 147.31 on rumored BoJ intervention before settling near 148.80.
• Market intervention on the Yen remains a rumor until official confirmation from Japan sources.
• It took three minutes for the USD/JPY to collapse over 270 pips, or -1.81%.

The USD/JPY into the low end heading into Wednesday's market session after an assumed Bank of Japan (BoJ) intervention on Tuesday saw the pair tumble nearly 2% from the day's peak just over the 150.00 major handle. 

The pair is now trading down into 148.80 after the pair staged a moderate recovery immediately following the rumored BoJ intervention.

Traders will be looking ahead to Wednesday's US Services Purchasing Manager Index (PMI), which is expected to tick down slightly from 54.5 to 53.6.

Forex Today: Yen wakes up as the Dollar remains robust, RBNZ next

The economic calendar is notably thin for the Japanese side, and the data docket is free for USD/JPY to jostle into position heading into another US Non-Farm Payrolls (NFP) on Friday.

 Broad-market sentiment has soured lately, sending investors piling into the US Dollar (USD). A narrowly-averted US government shutdown is likely to continue weighing on investor confidence, as the emergency stopgap measures only see US federal operations funded through mid-November.

Rising US Treasury yields on a lack of government confidence and ongoing fears of a potential global economic slowdown sees the US Dollar in a firm position, and any declines in the US Dollar Index are unlikely to be maintained.

USD/JPY technical outlook

Despite the rumored BoJ intervention, the USD/JPY remains in a notably bullish position, with market prices not far from yearly highs, and a bounce back above 150.00 will see the pair trading into its highest prices in decades.

Daily candlesticks see the USD/JPY remaining well-buoyed by the 34-day Exponential Moving Average (EMA) near 147.00, far above the 200-day Simple Moving Average (SMA) near 138.00.

Technical indicators have been breaking under the weight of the Greenback's march up the charts, and the Relative Strength Index (RSI) has been at or near the overbought limit since August.

USD/JPY daily chart

USD/JPY technical levels