USD/JPY is knocked down heavily after edging higher to 149.28. At the time of writing, it’s trading slightly below 149. Apparently, the unexpected excessive volatility is due to intervention by Japan. For now, it’s unsure if 149 is the level Japan would defend, or is it going to be 150. In either case, as USD/JPY looks rather resilient, it’s not a wise choice to sell it to ride on the intervention. It’s an avoid for the moment.
Earlier today, Japanese Finance Minister Shunichi Suzuki said, “We cannot tolerate excessive currency moves driven by speculators. We are closely watching currency moves with a sense of urgency.”
“Generally speaking, there are times when we intervene by making announcements and some other times when we do without it,” Suzuki also noted.
