Credit Agricole CIB Research discusses the scope for another wave of Japan's MoF intervention.

"USD/JPY is back above the key 159.00 level leaving the exchange rate open to further upside and therefore at risk of another wave of FX intervention. Japan’s Finance Minister Satsuki Katayama as well as US Treasury Secretary Scott Bessent both verbally intervened to support the JPY last week, but to little avail," CACIB notes.

"And while BoJ Board and committee members have been switching to supporting another rate hike in June, this is offering little to support to the JPY for several reasons: (1) the market is already 80% priced for a June rate hike; (2) the shift in BoJ pricing has not been as dramatic as the shift in pricing for the Fed or other G10 central banks; and (3) oil prices remain elevated and a drag on Japan’s terms of trade. It would take a hawkish hike by the BoJ in June and/or significantly weaker oil prices to improve the JPY’s prospects. A hawkish hike would be very uncharacteristic of the BoJ," CACIB adds.