Published: 2024-12-30T08:30:02.000Z
USD/JPY flows: BOJ Intervention Threat
Director of Research , Macroeconomics and Strategy
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USD/JPY is sitting at levels that could see a test of 160 into January and thus likely to make Japanese officials nervous.
Meanwhile, president elect Trump tariffs threats will likely pick up in January against China and Europe and this could also help USD sentiment. This could see some jawboning from Japanese officials and close to 160 could actually see some intervention. However, USD/JPY is being driven by the wide gap between U.S. Treasuries and JGB’s, while the BOJ is cautious about hiking rates further. This risks intervention having a short-term effect on USD/JPY, but not really changing the trend on USD/JPY.