It looks like $USDJPY is pushing higher, now around 161.67. With the Ministry of Finance previously indicating discomfort around these levels, how long until we see intervention warnings, or even actual action? This is getting close to prior intervention zones.
Good point. It's definitely in the range where we've seen rhetoric ramp up before. Betting on some verbal intervention very soon.
I'm not so sure. They let it run a bit higher last time before stepping in. The momentum is pretty strong right now, might need more than just words to stop it.
Is there a specific level everyone is watching for actual intervention? Or is it more about the speed of the move rather than the absolute level?
Agreed, the pressure is building. But with the Fed's stance, what can Japan really do long-term without burning through their reserves?