Update – I’ve seen at least two votes for 165 as the new “line in the sand” for USD/JPY.

According to ING:

• Japanese authorities allow USD/JPY to trade above April’s foreign exchange intervention levels.
• Previous comments from the top currency official suggest the new line in the sand could be near 165

Bank of America also set the new level at 165 at which Japanese authorities should intervene. The BoA believes that if the Bank of Japan reduces its JGB purchases (the BoJ has indicated that it will present a plan to this effect at the July meeting on the 30th and 31st), this will not be enough to support the yen. The BoA forecasts a USD/JPY rate of 158 at the end of the year.

It’s been a quiet start to the week for the yen so far. It’s scheduled to be 8 a.m. in Tokyo and 7 a.m. in Singapore and Hong Kong, so we should get some more action soon.