The Japanese Yen has been under sustained pressure, sliding to multi-month lows against the USD amid easy monetary settings by the BoJ and expectations of further fiscal stimulus under the new government.
In response, Japan’s Finance Minister flagged concern over “excessive” FX moves and vowed close monitoring of the currency space.
For FX traders this indicates that while the yen’s downtrend may persist, the risk of policy intervention or jaw-boning from authorities is elevated. Positioning around USD/JPY should therefore factor in both technical breakout risk and possible surprise from Tokyo.
In response, Japan’s Finance Minister flagged concern over “excessive” FX moves and vowed close monitoring of the currency space.
For FX traders this indicates that while the yen’s downtrend may persist, the risk of policy intervention or jaw-boning from authorities is elevated. Positioning around USD/JPY should therefore factor in both technical breakout risk and possible surprise from Tokyo.
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