USD/JPY: Another leg higher needed for actual FX intervention to be deployed – ING
The most notable moves in G10 since the start of the week have been the further sell-off in G10 low-yielders: Swiss Franc (CHF) and Japanese Yen (JPY). Economists at ING analyze CHF and JPY outlook.
Japanese authorities look at the rate of change more than levels
CHF has been a bigger underperformer, with a dovish Swiss National Bank that no longer targets a stronger CHF adding pressure on the currency, and we think it may be too early to pick a bottom.
USD/JPY touched 152.00, continuing to test Japan’s FX intervention tolerance. This may still be only a ‘verbal intervention’ range, with another USD/JPY leg higher needed for actual FX intervention to be deployed (perhaps closer to 155.00). Remember that Japanese authorities look at the rate of change more than levels.
Reprinted from FXStreet，the copyright all reserved by the original author.
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