• USD/JPY grinding within a 158-160 range, which looks likely to continue

• Falling market vol favours carry trades (JPY negative)

• But 160 acts as a psychological ceiling given potential intervention risk

• Though there are doubts whether 160-162 is the real line in the sand

• Price action nowhere near hitting the volatility threshold to trigger MoF action

• For now, markets lack a catalyst to break from this holding pattern

• Eyes stay on geopolitics but market sensitivity has dwindled
USDJPY daily chart


Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))