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USD/JPY Unwinds Brief Spike Through Y145.00 After BoJ Stands Pat On Policy

JPY

Spot USD/JPY see-sawed after the BoJ stuck with its ultra-loose monetary policy settings in the wake of yesterday's 75bp rate hike from the Fed.

  • The rate ripped through the Y145.00 mark on its way to new multi-decade highs at Y145.37 but promptly retraced the move, which is set to inspire speculation re: potential FX intervention.
  • Note that Japanese authorities conducted a rate check last week, effectively setting the stage for an intervention, not to mention repeated verbal warnings that all options were on the table.
  • The pair last deals at Y144.56, up 50 pips on the day.

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