ANZ has shared its views on the USD/JPY currency pair, highlighting the Japanese Yen's recent decline to its lowest levels in 2023. Given the situation, there is an increased likelihood of intervention by Japanese authorities.

Key Points:

• Continued JPY Weakening: The Japanese Yen has recently weakened to new lows for 2023.

• Risk of Japanese Authority Intervention: This ongoing depreciation of the JPY has reignited concerns about potential interventions by Japanese authorities to stabilize the currency.

• Broader Concerns by Japanese Bodies: The recent Bank of Japan (BoJ) meeting underscored the growing anxiety among various Japanese official entities, not limited to the Ministry of Finance (MoF). These bodies are worried about the Yen's weakening and have signaled readiness to take necessary measures if the situation persists.

• Entry Point for Shorting USD/JPY: ANZ believes that if the USD/JPY crosses its 2023 high of 145.07 and advances into the 146 level, it might be an opportune moment for traders to consider a short position on the pair.

Summary:

ANZ foresees a possible intervention by Japanese authorities, given the yen's continued depreciation. The recent BoJ meeting shed light on the concerns shared by multiple Japanese institutions regarding the yen's declining strength. Based on these developments, ANZ suggests that a move of the USD/JPY pair into the 146 region could be a good entry point for those looking to short the pair.