USD/JPY BOJ intervention watch - intervention seen as unlikely without US coordination

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USD/JPY BOJ intervention watch - intervention seen as unlikely without US coordination

<p>Bloomberg have a summary piece up that, in brief, says that while Japan has ample FX reserves to intervene in the currency market to support the yen, such action from the Bank of Japan is unlikely without a coordinated move with the US Federal Reserve. </p><p>Snippets:</p><ul><li>Past experience shows that US support is critical for turning the tide of a currency attack. Economists say Japan is very reluctant to intervene in the market out of fear the move could backfire, prompting a deluge of bets against the yen.</li><li>"In reality I don't think Japan will intervene," said Harumi Taguchi, principal economist at S&P Global Market Intelligence. "The biggest reason behind the weak yen is the continued rate hikes from the Fed. Unless that changes, I don't see intervention having an impact."</li></ul><p>There is plenty more <a href="https://www.bloomberg.com/news/articles/2022-09-12/japan-s-1-2-trillion-buffer-may-not-scare-yen-bears-without-us?sref=R17xFhjo" target="_blank" rel="nofollow">detail at the link </a>(Bloomberg is gated).</p><p>---</p><p>Earlier posts:</p><ul><li><a href="https://www.forexlive.com/centralbank/heres-what-to-watch-for-to-warn-of-imminent-bank-of-japan-boj-yen-intervention-20220907/" target="_blank" data-article-link="true">Here's what to watch for to warn of imminent Bank of Japan (BOJ) yen intervention</a></li></ul><ul><li><a href="https://www.forexlive.com/centralbank/the-4-things-to-watch-prior-to-bank-of-japan-fx-yen-intervention-20220911/" target="_blank" data-article-link="true">The 4 things to watch prior to Bank of Japan FX yen intervention</a></li></ul><p>USD/JPY has backed off from 145:</p><ul><li><a href="https://www.forexlive.com/news/knock-out-options-145-in-usdjpy-defensive-sellers-ahead-the-level-20220908/" class="article-link article-link">Knock out options 145 in USD/JPY - defensive sellers ahead the level</a></li></ul><ul><li><a href="https://www.forexlive.com/news/usdjpy-falls-further-on-the-day-amid-softer-dollar-kuroda-jawboning-20220909/" class="article-link article-link">USD/JPY falls further on the day amid softer dollar, Kuroda jawboning</a></li></ul><p>More:</p><ul class="text-align-start vertical-align-baseline"><li class="vertical-align-baseline"><a href="https://www.forexlive.com/centralbank/usdjpy-could-resume-its-path-higher-unless-there-is-a-policy-change-from-the-boj-20220912/" class="article-link vertical-align-baseline">USD/JPY could resume its path higher unless there is a policy change from the BOJ</a></li><li><a href="https://www.forexlive.com/centralbank/yen-players-are-gunning-for-147-in-usdjpy-20220912/" class="article-link">Yen players are "gunning for 147" in USD/JPY</a></li></ul>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: USD/JPY BOJ intervention watch - intervention seen as unlikely without US coordination

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