With USD/JPY back on the 128 big figure (again) the question of Bank of Japan intervention to stem yen losses will soon be back front of mind. I expect plenty of remarks out Japan's MoF today. And something from the BOJ in their statement today.
Bank of Japan does not have a set time for the announcement and statement. Some time in the 0230 to 0330 GMT time window is usually a safe bet.
Earlier previews:
With intervention likely a hot topic ahead, this from Scotia late last week is pertinent:
- Some believe that crossing 130 could trigger formal intervention. Finance Minister Suzuki has said that sudden moves in the foreign exchange market like what has happened to the yen are undesirable and that there should be a response with a sense of urgency. It may be doubtful that the MoF could sustainably weaken the yen given that the dominant driver is the relative stance of BoJ monetary policy compared to the Federal Reserve. The BoJ appears rather unlikely to alter its stance despite the MoF’s concerns.
USD/JPY daily candles:
