MUFG Research discusses the scope for further JPY intervention as USD/JPY reaches another cycle high.
Last night’s move for USD/JPY above the 146.00-level signals that the Japanese authorities are not concerned about defending particular levels. The Japanese authorities intervened on 22nd September at just below the 146.00-level, and have not repeated it on this occasion," MUFG notes.
"The pace of the yen sell-off is more important. USD/JPY has been moving higher at a more gradual pace in recent weeks which is more tolerable for the Japanese authorities. If the pace of the yen sell-off was to accelerate, then we fully expect the Japanese authorities to quickly step back into the market to support the yen," MUFG adds.