Japanese officials are not officially saying it but they aren't denying it either. And that pretty much confirms what happened overnight. In case you missed it: USD/JPY smashed lower in sign of intervention
That brought USD/JPY down to a low of 147.27 before a quick bounce back and the pair is now settling just above the 149.00 mark on the day. The main story in markets is still all about higher Treasury yields and that is making Tokyo's task to intervene effectively a tough one:
10-year yields in the US are now at 4.85% (!) as the rout in bonds continue to gather pace to start the new month. So, unless there is a narrative switch from the BOJ, it is going to be tough to keep fighting the tide of a weaker yen for Japanese authorities.
And as yields continue to surge higher, the dollar is able to stem off any broader weakness as a result of the latest round of intervention in the Japanese yen - at least for now.
