JP Morgan discusses the scope of another wave of JPY intervention by Japan's MoF.

"End of last week saw an acceleration through 161 and all of a sudden we are knocking on the door of 162 - somewhere USDJPY has not been for 40 years. Spicy price action Thursday night bears the hallmark of a rate check but as with the prior suspected episode (clearing of 160 over NFP earlier this month) the rate of recovery has been pretty aggressive," JPM notes.

"We are nearing an inflection point here and the MoF must know anything except bold action will risk a significant acceleration in JPY weakness, we keep hearing from Katayama but it is really Mimura we need to hear from. Not positioned here but would be very surprised if they let is go; they will feel that the energy complex is on their side and they will also be aware that JPY shorts have built to relatively decent level now," JPM adds.