Confirmed joint intervention supports JPY
The confirmed U.S.-Japan joint intervention supports JPY as it could put a firm lid on USD/JPY rally. Short end JGB yields are also rising, with 2yr shooting past 1.5%. It indicates market participants are now anticipating a higher terminal rate from the BoJ.
USD/JPY once sank to 155.28 before recouping partially losses to trade 0.6% lower at 156.53.