• Yen could be on the brink, despite the BOJ's rate hike and official concerns about a weak yen

• USD/JPY briefly surged to 160.79 on Wednesday, a nearly two-year high

• That rise has wiped out USD/JPY losses caused by Japan's April 30 intervention

• Japan vows to act 'any time' on yen as markets brace for intervention

• Spot has traded in a tight 160.54–160.76 EBS range, the key level to watch is 161.00

• A break above 161.00 would intensify pressure on Japanese officials to act

• A continued lack of action from authorities could encourage further yen selling across markets

• 30-day log correlation between USD/JPY, EUR/JPY well below +0.5 (relationship broken)

Daily Chart


Correlation Chart


(Martin Miller is a Reuters market analyst. The views expressed are his own)