The pair did caught a bit of a dip from 125.50 to 125.12 earlier but is now keeping around 125.30 levels. The brief drop came from some verbal intervention by Japanese authorities once again:
As mentioned before, these sort of jawboning by local authorities don't really mean too much when the BOJ itself prefers a weaker yen, on the balance of things. Adding to that is the lack of conviction when it comes to really intervening in the currency market, barring massively volatile movements.
As much as it has been a sort of parabolic rise in USD/JPY in the past few weeks, we may not get any real intervention talk until 130 or perhaps even 140. Even then, any currency intervention will be tough as it needs to be coordinated with the US Treasury in all likelihood. So, we'll see.
For now, USD/JPY buyers are hoping to seal a break above the 125.00 mark and keeping a weekly close above that will be a good step. The 2015 high @ 125.86 may offer some resistance but beyond that, it's clear skies towards 130.00 as long as the bond market rout continues to keep pace in the days/weeks ahead.
