Japan is on holidays today. Yen is collapsing, with no prospect of even verbal support.

Bank of Japan intervention was, and still is, directed at controlling JGBs. Its not even a secret, YCC is Yield Curve Control! The BoJ tells us that while that policy is abandoned they are still committed to buying the same amount, so its still prevalent, with no change.

On the currency, Japan’s Ministry of Finance, the authority that will direct the Bank of Japan to intervene (if it ever does!) if hyper-aware of the 500-odd bp carry that exists between the USD and JPY. If the MoF/BoJ intervene, how much impact are they going to have? Dip buyers will send them gifts!

160 is just another big round number stop-off point for USD/JPY. A speed bump in the road.

Anywya, USD/JPY update:

This article was written by Eamonn Sheridan at www.forexlive.com. Source