USD/JPY flows: Up and down on the 150 handle

The ebbs and flow of USD has seen the USD/JPY going up and down the 150 handle. FX intervention has been an effective detergent for speculators stretching their position against the JPY but the latest verbal intervention from Suzuki hints inaction as he said weak JPY has its pros and con. While this is understandable for there should be a fundamental shift soon in the BoJ monetary policy, this softness seems to have open the green light for a slow grind upwards in USD/JPY. Still, any sharp spike will be met with potentially intervention as it is the most unfavorable for the BoJ, compared to a slow weakness in the JPY.

U.S. Treasury Yields are higher across the curve while JGBs yields are also in the green. With broad USD strength, USD/JPY recaptured the 150 handle and is trading 0.29% higher at 150.33.