A snippet from ING, dismissive of concerns about possible yen intervention:
- Ahead of Friday’s Bank of Japan meeting, there will no doubt be more chatter about intervention.
- However, the speed of the decline in the JPY relative to other currencies is not particularly alarming at this point, and that is probably more important to the BoJ than any particular line in the sand.
Earlier on the intervention question:
- BOA predicts USD/JPY surge to 160 as BoJ stands helpless
- Potential Bank of Japan yen intervention on Friday: USD/JPY on the radar
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The thing about intervention concerns is that if the market is too scared to buy USD/JPY then there are fewer sellers around the place as it rises. Like this:
Hitting a new 34 year high above 155.39
