A snippet from the Wall Street Journal on the lower yen in Tokyo trade so far today./ In brief:
- yen weakens
- Japanese authorities’ verbal warnings appear to be losing effectiveness
Citing CBA analysts:
- Market reaction to Japanese Finance Minister Kato’s comments on Tuesday was much smaller compared with Friday
- “If words cease to have the desired impact, it may take action from the Ministry of Finance to get the desired impact on the JPY,”
- risk of market intervention by Japanese authorities to support the yen at any time
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Other analysts are not warning o yen intervention at any time, eyeing 160 as the trigger level:
- ICYMI - Citi base case is for no USD/JPY intervention before 160
- USD/JPY 160 level - potential BOJ intervention, rate hike
