Japanese Yen: Intervention risk near 160 highlighted – DBS
Philip Wee of DBS Group Research notes that markets still focus on Japan’s struggle to support the Japanese Yen, while underplaying broader USD implications.
Japanese Yen intervention risk near 160 highlighted by DBS
Philip Wee of DBS Group Research emphasizes that markets still focus on Japan's efforts to support the Japanese Yen, while downplaying broader implications for the US Dollar. He warns that further operations in USD/JPY cannot be ruled out around or above the critical 160 level, as Washington's stance provides Tokyo political cover to keep intervention on the table.
Although USD/JPY has recovered from its low of 155 on August 3 to 159 last week, the Yen remains 2.5% stronger compared to pre-intervention levels. Markets should not overlook the possibility of additional interventions around or above the pivotal 160 point.
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