USD/JPY flows: 160 in sight
BoJ summary of opinions no surprises
Japan FX Diplomat Kanda doesn't comment on FX levels
As USD/JPY approaches 160 figure, we have Kanda's jawbone intervention with the regular stuff. He is keeping it "mysterious" with no comment on FX level and will not comment if recent forex moves are excessive. It is no doubt 160 will be intervention zone from market participant's mind but the essence of intervention is always its unpredictability. If history is lesson, even when on their toes, speculators will challenge the level gradually until fundamental/momentum shifts or met with intervention. The June BoJ summary of opinion also provide us no surprises, members are split between waiting for more confirmation of achieving inflation target and hike rates swiftly. The consumption drag and fx weakness are on their mind.
USD/JPY is trading unchanged at 159.75 despite 10yr JGB yields approaching 1% again.