Japan is on vacation today. The yen is collapsing, with no prospect of even verbal support.

The intervention of the Bank of Japan was, and still is, aimed at controlling the JGBs. It’s not even a secret, YCC is Yield Curve Control! The BoJ tells us that even if this policy is abandoned, it remains committed to buying the same amount, so it remains widespread, without change.

Regarding the currency, the Japanese Ministry of Finance, the authority that will order the Bank of Japan to intervene (if it ever does!) if it is hyper aware of the carry of around 500 bp that exists between the USD and the JPY. If the MoF/BoJ intervenes, what impact will they have? Dip buyers will send them gifts!

160 is just another big round number for USD/JPY. A speed bump on the road.