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FX Daily: Markets reluctant to price in more JPY interventions
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https://think.ing.com/articles/fx-daily-markets-reluctant-to-price-in-more-jpy-interventions/
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4 itemsDESK NOTEING Economics
FX Daily: Markets reluctant to price in more JPY interventions
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FX Daily: Markets reluctant to price in more JPY interventions
INVESTINGLIVEJustin Low
USD/JPY faces up against risk of another round of FX intervention - Credit Agricole
INVESTINGLIVEJustin Low
A quick drop in USD/JPY before bouncing back up
The desk interprets recent price action in USD/JPY as indicative of diminishing effectiveness of intervention measures by Japanese authorities. Per the full note [source], the pair's drop from 157.70 to 156.75, followed by a rebound to around 157.30, suggests market resilience despite intervention signals. Current positioning reflects a cautious sentiment as traders weigh the potential for further intervention against a backdrop of low liquidity. This aligns with our broader view that USD/JPY may test higher levels in the near term.