USD/JPY: Tokyo authorities keeping their powder dry, FX intervention may not be imminent – ING

USD/JPY is now comfortably trading in the 145-150 FX intervention zone. Economists at ING analyze the pair’s outlook.

A larger trigger for a JPY rally would probably be some kind of sharp risk asset correction

It seems that Tokyo authorities are keeping their powder dry for the time being, not wanting to fight the US Treasury-yield driven rise in USD/JPY.

FX intervention may not be imminent and a larger trigger for a JPY rally would probably be some kind of sharp risk asset correction perhaps driven by those surging US Treasury yields.