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

"BoJ Governor Kazuo Ueda was on the hawkish side yesterday indicating that a June rate hike is likely but not guaranteed. But with Japan's rates market already over 80% price for a June hike, the JPY's upside from Ueda's hawkishness as well as a June rate hike is limited. We maintain this would only change if the BoJ were to perform a hawkish hike indicating investors would not have to wait another six months for another rate hike...So it appears that even the BoJ is joining the fight to defend the JPY. The main support for the JPY, however, remains the threat of and/or actual intervention," CACIB notes.

"To maintain credibility, the MoF would have to trigger another round of intervention if USD/JPY were to significantly breach 160, even though it would likely be fighting fundamentals. Oil prices remain elevated as does the US-Japan short-term rates spread," CACIB adds.