The Japanese yen is a notable mover today, with USD/JPY up by 0.9% to above 141.00 on very little to no news. It builds on the FOMC meeting decision yesterday but this looks more yen-related than that, if I were to pick a story. The drop in the currency came during Asia trading and looks to be flow-based for the most part – adding to the hold of the 140.00 mark.
That prompted some verbal intervention as seen here. But where will Japan draw a hard line on more serious intervention?
In a latest poll by Reuters, 15 out of 28 economists said that the government and BOJ will take steps which may include intervening in the FX market once USD/JPY pushes above 145.00. Another 12 economists said that the threshold for that will be the 150.00 level.
Meanwhile, 96% of the respondents expect the BOJ to keep policy unchanged this week while around half of those polled expects some potential tweak to the yield curve control in either July or September.