JPY weakened after the (most-telegraphed ever?) Financial institution of Japan tightening on Tuesday:
I’ve seen notes now warning that the Financial institution of Japan might should intervene. UBS, for instance, says that now the tightening is out of the way in which, and there aren’t any additional strikes anticipated on the foreseeable horizon, merchants might very properly really feel emboldened to take USD/JPY larger. Yen is uncovered to an additional weakening, and merchants would thus do properly to be warty of intervention to maintain the yen from sliding too far.
On the very least I count on verbal ‘jawboning’. Japan’s Ministry of Finance did have success with this late final yr:
I ponder if it’s going to be as simple this time although? I do not suppose so.
