Speculation over Japanese FX intervention remains high. Economists at ING analyze the USD/JPY outlook after the pair touched a multi-decade high near 152.00 on Wednesday.
Higher US rates and low volatility weigh
We suspect Japanese authorities would pull the trigger were USD/JPY to burst through the 152.00 area, intervening perhaps somewhere in the 153.00-155.00 range.
With US interest rate volatility collapsing and much demand for the carry trade, it is, however, hard to see much of a market-led move lower in the USD/JPY pair.
