If it wasn’t for the fear of intervention, Fed’s Kashkari would’ve sent USD/JPY above 150

USD/JPY hit an 11-month high above 149.15 on Tuesday. Kashkari added fuel to the monetary policy divergence fire between the Federal Reserve and Bank of Japan with his comments:

• Fed’s Kashkari sees 40% chance of further rate hikes, perhaps ‘significant’ hikes

If it wasn’t for the worry over Bank of Japan intervention USD/JPY would have gone higher on his remarks. The 150 figure is my guess, could have been more.

I wonder if we’ll get some yen-supportive items in today’s minutes (July meeting) due from the BOJ?

• Economic calendar in Asia Wednesday, 27 September – BOJ minutes, Australian inflation data

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