Intervention

Some traders view Kanda’s “lame duck” status as a sign that Japanese policymakers may not intervene until USD/JPY reaches closer to 165.

USD/JPY remains in a bullish technical posture, with potential for a retest of 160.00 unless the BOJ changes course no interest rates.

It was supposed to be a quiet day with Japan on a public holiday. Yet the initial rally to 160 may have irked central authorities enough to ditch their supposed day off, intervene and send USD/JPY 400-pips lower.

Diverging interest rate expectations between the Federal Reserve and the rest of the developed world have been THE biggest story of the year for FX traders (USD/JPY in particular), and Friday’s Core PCE report will be the next major test to determine if that trend will carry over into Q2

For USD/JPY, the next test to watch will be at 155.00, and if the MOF/BOJ fail to act if USD/JPY breaches that level, traders may start to turn their eyes up to 160.00 next

USD/JPY is consolidating while EUR/JPY and GBP/JPY remain in healthy uptrends.

USD/JPY remains by far the most bullish of the major yen crosses...

If we don’t see USD/JPY intervention at the start of the week, the key zone to watch will be 146.00-147.00, but longer-term yen bulls need to see a shift in BOJ policy to reverse the USD/JPY uptrend...

A volatile session for the yen on Friday likely points to a currency intervention from the BOJ or MOF, in an attempt to stop or at least pause the currency’s fast depreciation.

A volatile session for the yen on Friday likely points to a currency intervention from the BOJ or MOF, in an attempt to stop or at least pause the currency’s fast depreciation.

Is the BoJ undoing the government’s attempt to shore up the yen?