The USD/JPY continues to rise, and is gradually approaching the 150 mark, which, according to traders, may provoke hidden interventions. Since the beginning of October, the USD/JPY has grown by 3.2%, and is now trading at 149.45.
Last month, the Bank of Japan conducted the first foreign exchange intervention since June 17, 1998 to buy the yen and sell the dollar against the background of the continuing decline in the national currency. At the same time, the last currency intervention, when the Bank of Japan sold the yen, was carried out 11 years ago – in November 2011.
Traders note that twice in less than a week there were sudden sharp pullbacks of the yen when it was approaching new lows. This sparked rumors that officials were secretly conducting interventions.
In general, experts believe that the Japanese authorities will focus on the rate of decline of the national currency, and not on any specific figure. But the 150 mark for the USD/JPY is seen as an important psychological level, and a rise higher may increase pressure on the authorities to take further action. Finance Minister Shunichi Suzuki warned on Wednesday that Japan is stepping up market monitoring and remains ready to take action if necessary.