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Mar 29 - 03:55 AM

USD/JPY - High Probability Of Unilateral USD/JPY Intervention By BOJ

By Jeremy Boulton  —  Mar 29 - 02:40 AM
  • Verbal warnings will likely be followed by intervention

  • The speed and extent of USD/JPY gains reflects awful state of positions

  • Clearly few are sufficiently hedged for a yen drop of this extent

  • Japan likely to adopt stealth methods in guise month-end repatriation

  • With Japan insurers set to invest new funds that tack may have to change

  • BOJ has ample reserves to slow USD/JPY's rise ($1.25 trillion)

  • Historic intervention have seen BOJ sell or buy many billions daily

  • Huge BOJ intervention successfully slowed USD/JPY ahead first 100 test

  • Slowing USD/JPY (curbing volatility) should be BOJ's aim

  • Unlikely that a line in the sand can be successfully defended


USD/JPY Click here

Source:
Refinitiv IFR Research/Market Commentary

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