Bank of America Global Research discusses the scope for another round of FX intervention by Japan's MoF.

"Our usual checklist for FX intervention has mostly been ticked off. The following factors typically precede MoF intervention: a new cyclical high in USD/JPY, unstable JGB market, "behind the curve" market narrative on monetary policy, two consecutive days of sharp USD/JPY gains driven by yen weakness rather than US dollar strength and MoF's currency chief Mimura's comments," BofA notes.

"Higher volatility is perhaps the only condition that has not been triggered - 1m implied volatility has risen but not above 8%, the level before the April intervention," BofA adds.