USD/JPY Sees Support Near 151.00, BoJ, MoF and FSA Met To Discuss Fin Mkts Late Yesterday

Yen rose modestly in Wednesday trade, gaining 0.15%. USD/JPY tracks in the 151.25/30 region in early Thursday dealings. The pair got close to 151.00 late in Wednesday trade, as Bank of Japan, Ministry of Finance and FSA officials met to discuss financial markets, raising speculation that currency market intervention could be imminent.

• The subsequent MOF Kanda’s press conference failed to spark a further correction lower for the pair though. The joint meeting came after earlier highs in USD/JPY on Wednesday at 151.97, levels not seen since 1990. FinMin Suzuki also threatened bold action in FX markets.
• Yen was the top performer in the G10 space for Wednesday's session, although overall G10 moves were fairly muted. The BBDXY finished down a touch amid lower US Tsy yields (10yr back to 4.19%), while equity sentiment was positive across the major markets.
• In the risk reversal space the 1 week saw a decent move lower in Wednesday trade, last near -0.86. Recent highs have been close to flat. We are still comfortably above recent lows though near -2.50. 1 week implied vol is also higher, but saw little follow through above the 7% handle on Wednesday.
• In the option expiry space today note the following for NY cut later: Y148.25($894mln), Y150.00($1.3bln), Y150.50($2.9bln), Y151.00($732mln), Y152.00-25($2.8bln).
• On the data front we have weekly offshore investment flow figures. Also note the BoJ Summary of Opinions is out for the march policy meeting.