One of the big international banks raises the notion that the recent rally in USD/JPY and EUR/JPY may have been helped by what in the past has been termed “stealth” intervention. Over the years the BOJ has employed countless methods to weaken the JPY, including buying USD/JPY through proxies rather than intervening directly in the market One piece of evidence that this might be the case is price action in the US Treasury bill market of late. If the BOJ has been buying dollars, they likely are parking them in bills.
USD/JPY is ticking up as the rumor makes the rounds. Support is at 97.00/10 now with more just below 96.50. 97.70 and 97.95 are near-term resistance on rallies. We trade now at 97.48.
