With USD/JPY levels in the mid-145s, nobody seems to be afraid of interventions, economists at Commerzbank report.

The state of current volatility is not seen to be unusually low

The state of current volatility is not seen to be unusually low. The market is not just relaxed about the current risk of interventions but also beyond that. It would seem that the verbal interventions made no difference.

At current levels, the Yen is not trading at artificial levels achieved with the help of verbal interventions. 145 to 146 is the area where USD/JPY is trading ‘naturally’. If the MOF were to issue effective threats that would have a positive effect at current levels.