We’re approaching early evening in Tokyo and there hasn’t been any meaningful verbal pushback by Japanese officials today. Typically, you’d see them come out in droves to try and pin USD/JPY back. But amid the silence today, perhaps they’re hoping that the quietness is something traders will take caution upon. And at least for now, it is working.
USD/JPY has been hovering around the 154.85-92 region for almost two hours now. There was a brief dip to 154.76 earlier but it was quickly bought up and we’re back to this nervous range again. All eyes are whether or not Japan will step in if price crosses the key line in the sand above the 155.00 mark.
And that is keeping broader markets relatively muted on the day. The dollar is steady, holding slight gains against the euro and pound. Meanwhile, European indices are just marginally higher with S&P 500 futures up just 0.2% currently.