BOJ governor Ueda is still speaking but he’s not saying anything about the currency and recent developments. He’s preaching to the choir in saying that the inflation trend is still intact and they could still raise rates again at some point. But that’s not what yen traders are really focusing on at the moment.
On the currency itself, he said he won’t make any comment on FX levels. But when he did touch on the yen situation, he said this.
So, what’s next for USD/JPY as the pair is seeing a gain of roughly 100 pips today?
It’s all about if Tokyo sees this as being a move that is going too far, too fast. The line in the sand has definitely shifted now. And you have to wonder, if we do see price take out another figure level in 157, are they going to at least step in once before the 160 mark?