The pair USD/JPY it is approaching the point (147.66) that marked the high during the last intense support operation for the yen that the Bank of Japan triggered in 1998. The real question is whether the intervention would be effective in stemming the yen’s decline. The answer is that Unilateral intervention unlikely to deliver sustained yen rise, Scotiabank economists say.
US and Japanese monetary policy settings going in opposite directions
“An official intervention could cause a strong rebound in the yen in the short term, perhaps as much as 3-5% if timed well“.
“Beyond an unviable and sustained period of official yen buying, a more sustained yen rebound will need support from a change in underlying fundamentals (monetary policy dynamics) and a reversal of the broader dollar uptrend. “
Source: Fx Street
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