Goldman Sachs on the sharp USD/JPY ‘intervention’ drop from 150

summary of a Goldman Sachs note is via the folks at eFX.

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USD/JPY’s Abrupt Movements:

From the end of July, there has been a gradual weakening of the JPY against the USD. However, the trajectory witnessed a sudden twist on October 3 post 11pm JST. After nudging the 150 mark, there was an almost instantaneous retraction to the 147 handle.

  • This abrupt movement was short-lived, with the rate swiftly reverting to the vicinity of 149 within a few minutes.

The Enigma of Possible Intervention:

  • Clarification regarding potential interventions remains elusive as neither the Ministry of Finance in Japan nor the New York Fed have shed light on the matter.
  • Contextualizing this with past events, the Japanese authorities notably stepped in to buttress the yen when the USD/JPY touched the 150 level on October 21, 2022. This historical precedent has sowed caution within market circles, prompting them to view the 150 handle as a potentially sensitive intervention (or warning) threshold.

Closing Thoughts:

  • Goldman Sachs accentuates the market’s sensitivity towards the 150 level in the USD/JPY pair. Given past interventions, market participants are on high alert, interpreting this threshold as a potential intervention cue. It remains imperative to keep tabs on official responses, as they could significantly shape the currency pair’s dynamics moving forward.


usdyen Goldman Sachs intervention 06 October 2023

This article was written by Eamonn Sheridan at Source