USD/JPY flows: Still no intervention in sight

As USD/JPY broke through 155, the speculated intervention from some market participants did not materialize and sees the rally continues. While extreme weakness in the JPY will lure intervention, one must also keep in mind the pace of such weakness. Rather than a spike, the latest USD/JPY rally began in March and entered consolidation for two weeks before slowly grinding higher. Japan chief cabinet secretary Hayashi joined the club with verbal intervention by saying rapid FX moves undesirable and is ready for full response. It is a rhetoric that we could read as intervention could be close but "rapid move" may have different interpretation.

Both the U.S. Treasury and JGB Yields are higher across the curve and see USD/JPY marching 0.24% higher at 155.7.