BOJ will intervene if USD/JPY threatens break of 150: “intervention … the last option”

A few comments on the yen from around the place.

Dai-Ichi Life Research Institute says the Bank of Japan are only going to step in if the yen is about to break through 150:

  • “Although they did it last year, currency intervention is still the last option.”

Mitsubishi UFJ Kokusai Asset Management:

  • “Although the yen has weakened, the issue here is the speed of moves and pace of inflation,”
  • “The authorities are unlikely to take action at this moment.”

Itochu Research Institute:

  • “Pressure on the yen won’t escalate much from here. The Fed is approaching its terminal rate with probably one more hike, at most two
  • “The yen doesn’t have the same falling momentum like last year.”

Weekly candles showing the trend, which is the friend of the Bank of Japan to the extent it has helped nudge inflation higher. Not the sort of inflation the BOJ wants, but if wasn’t for bad inflation they might not have any at all.

This article was written by Eamonn Sheridan at Source