USD/JPY has settled above the 145 mark. Economists at Scotiabank analyze the pair’s outlook. Intervention is a clear risk if USD/JPY nears the 150 lev
Finance Minister Suzuki commented last week that the authorities would respond appropriately to ‘excessive moves’ in the exchange rate but beyond that, finance officials have been quiet on FX recently. Still, market participants understand that intervention is a clear risk if the USD nears the 150 level and the charts suggest that, after the USD’s advance above the June high , the risk of a retest of 150 is hard to ignore.
If JPY defence is a priority, direct FX intervention and allowing slightly higher domestic yields to coincide with a downturn in US bond yields would be optimal from a policy effectiveness point of view.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.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/JPY drifts back closer to weekly low, trades above 145.00 mark ahead of US PMIsThe USD/JPY pair remains under some selling pressure for the second successive day on Wednesday and drops to the lower end of its weekly trading range
Read more »
USD/JPY keeps the red for the second straight day, manages to hold above mid-145.00sThe USD/JPY pair remains under some selling pressure for the second straight day on Wednesday, albeit lacks follow-through and remains confined in a f
Read more »
USD/JPY jumps above 146.00 following PBoC's unexpected rate cutAt the start of the week, the USD/JPY sees green around 146.20, showing more than 0.60% gains on the day. In that sense, the People’s Bank of China's
Read more »
USD/JPY Price Analysis: Loses traction above the 145.60 area, eyes on the US PMI dataThe USD/JPY loses momentum but holds above the 145.60 mark heading into the early European session on Wednesday. Markets turn cautious ahead of the US
Read more »
USD/JPY: Tokyo authorities keeping their powder dry, FX intervention may not be imminentUSD/JPY is now comfortably trading in the 145-150 FX intervention zone. Economists at ING analyze the pair’s outlook. A larger trigger for a JPY rally
Read more »
USD has further upside scope but USD/JPY likely to lagThe US Dollar recorded another week of gains. Economists at MUFG Bank are maintaining their view of further USD strength over the short term. USD bull
Read more »