Credit Agricole CIB Research discusses the scope for further JPY intervention.
"USD/JPY has pushed as high as 147 without the MoF telling the BoJ to intervene to support the JPY. We continue to think the MoF is taking a sniper approach with its intervention. Importantly, since arriving in Washington for the G20 meeting of finance ministers and central bankers, Japan’s Finance Minister, Shun’ichi Suzuki, has reemphasized the MoF is not focusing on levels in FX, but instead on volatility. And, that there is no particular FX level that would trigger intervention," CACIB notes.
"Excessive FX moves have been previously defined by BoJ Governor Kuroda as 2- 3 Yen per day, so a rush higher in USD/JPY towards 149 would meet that benchmark.
So we think the MoF is primed to intervene to support the JPY post the US CPI data if the need arises and this need would be a large 2-3 Yen move higher in USD/JPY," CACIB adds.