USD/JPY: Intervention in support of the yen will not be successful beyond a short-term rebound – Scotiabank USDJPY Japan Banks
1998. The real issue is whether intervention would be effective in stemming the JPY slide. The answer is that unilateral intervention is unlikely to achieve a sustained rise in the yen, in the view of economists at Scotiabank.“A bout of official intervention could prompt a sharp-ish rebound in the JPY in the short run – perhaps by as much as 3-5% if timed well.”
“Beyond an unfeasibly large and sustained period of official JPY buying, a more sustained rebound in the JPY will need the support of a change in underlying fundamentals and a reversal in the broader USD bull trend.”Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
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