April 30, 2024 12:09 GMT
USDJPY Rises To Session Highs, Back Above 157.00
JPY
- USDJPY had been operating in a fairly narrow range approaching the NY crossover, however, spot has popped 15 pips or so in recent trade to trade at fresh session highs above 157.00. A heavy US data week kicks off shortly with US Q1 ECI, February house prices, April MNI Chicago PMI and consumer confidence.
- ING have pointed out that their base case assumes that the MoF has started an intervention campaign and remains open to selling more FX as USD/JPY faces further upside risks.
- According to them, Japanese officials’ hope is probably that a softening in US data will ultimately release pressure on the yen, especially considering that the Bank of Japan has not signalled it wants to include the currency in its monetary policy decision function.
- They cite a move in USD/JPY back above 157.0 should see intervention risk rise exponentially.
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