USD/JPY: High chance of intervention but only after a break above the 150 level – MUFG
|USD/JPY has broken above the 149 level. Economists at MUFG Bank analyze Yen’s outlook.
Opposition to currency weakness remains firm
We continue to see a high chance of intervention but only after a break above the 150 level when there is a higher chance of stops fuelling volatility and ‘disorderly’ price action that would provide the justification for the MoF to intervene.
The authorities in China have also upped their rhetoric opposing CNY weakness as well. Actions to curtail upside moves in USD/CNY would certainly help Tokyo in its battle to limit JPY weakness.
We see the risks still skewed to the upside for both USD/JPY and USD/CNY given the US Dollar momentum but opposition to currency weakness in Tokyo and Beijing remains firm.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.