An extract from ING, dismissive of concerns about possible intervention on the yen:
- Ahead of Friday’s Bank of Japan meeting, there will likely be more talk about intervention.
- However, the speed of the JPY’s decline relative to other currencies is not particularly alarming at this point, and this is probably more important to the BoJ than any particular line in the sand.
Earlier on the intervention question:
- BOA forecasts USD/JPY rise to 160 as BoJ remains powerless
- Potential Bank of Japan intervention on the yen on Friday: USD/JPY on the radar
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The problem with intervention concerns is that if the market is too afraid to buy USD/JPY, there will be fewer sellers as the currency rises. Like that:
Hits new 34-year high above 155.39
This article was written by Eamonn Sheridan at www.forexlive.com.
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