ING’s Chris Turner describes USD/JPY’s rollercoaster, with a 3% drop on reported Japanese intervention followed by a near 2% rebound. He notes that coordinated Fed-Treasury involvement was key in January but now sees the story as having moved on. Turner expects more Japanese FX intervention, yet believes it can only slow, not reverse, the underlying USD/JPY bull trend without a clearer Fed shift.
Japanese action tempers but does not end the rally
“USD/JPY has been on a rollercoaster, falling 3% yesterday on Japanese intervention, only to bounce back near 2% overnight. The Nikkei reported that Japanese authorities did indeed intervene yesterday…
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