USD/JPY has risen for six straight trading days and is up another 64 pips today to the highest levels since the April 28 spike higher and intervention. A close here would be the highest since 1990.
There are concerns about Japanese banks after Norinchukin Bank said it will sell $63 billion of sovereign bonds, mostly Treasuries and European sovereigns. The sales will take place by the end of March 2025.
Some say this is an isolated incident but there are worries it could trigger similar moves from others.
As for the yen, the funamentals are tough with the US dollar broadly solid and hopes for a rate-hiking cycle in Japan fading. At this point, investors need to worry about intervention but the MoF might not pull the trigger until 160 breaks again.
