USD/JPY: Did the BOJ intervene yesterday? What's next? - MUFG

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USD/JPY: Did the BOJ intervene yesterday? What's next? - MUFG

<p>MUFG Research discusses the scope of the JPY intervention and argues that the elevated intervention fears could well fade quickly. MUFG maintains a long USD/JPY targeting a move towards 146.</p><p>"The yen was the clear outperformer in the FX markets yesterday with
those gains only partially reversed so far today after the comments
yesterday from Finance Minister Shunichi Suzuki and reports that the BoJ
 was checking rates had the desired impact...The steps were in reality
the last efforts to halt JPY depreciation before actual intervention. So
 in that sense the market reaction is understandable. But it is also highly likely that there is still a deep reluctance on the part of the authorities to intervene," MUFG notes. </p><p>"However, equally we shouldn't simply dismiss what happened yesterday. If there is intervention in the coming days or weeks it will be conducted under the guise
 of what is allowed under the parameters of the G20. That means the
speed of a move is important. In June when the MoF/BoJ/FSA released a
joint statement expressing concern over JPY depreciation (10th June),
USD/JPY had advanced 5.5% in the previous 10-day period. Over a 13-day
period to yesterday, USD/JPY advanced 6.0%. If we consolidate and then slowly move higher, the chances are that the MoF will accept the move and refrain from intervening," MUFG adds</p><p>For bank trade ideas, <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&source=gmail&ust=1663343712069000&usg=AOvVaw2LULLcON8PPeooNX-Nmiht">check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&source=gmail&ust=1663343712069000&usg=AOvVaw2LULLcON8PPeooNX-Nmiht">Get it here</a>.

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                This article was written by Adam Button at forexlive.com.

Source: USD/JPY: Did the BOJ intervene yesterday? What's next? - MUFG

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