I posted earlier that Japan's Ministry of Finance (and the Bank of Japan) will be eyeing the US CPI report for the prospects of JPY intervention, if CPI surprises to the topside it'll spur USD/JPY buying and delay potential intervention to support the yen (at the margin):
I'm probably overststaing it and the CPI will come in more or less as expected and we'll all go back to waiting for the next potential catalyst. But, if not, here is some info that will come in useful if intervention to support the yen draws close:
To help keep track of escalation on verbal intervention that would come before actual 'rate checks' and then USD/JPY selling out of the Bank of Japan, here's a guide:
- The clear signals to watch for imminent Bank of Japan FX yen intervention
- Here's what to watch for to warn of imminent Bank of Japan (BOJ) yen intervention
I wrote those posts last year but they are still relevant.
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USD/JPY update. Big red lines are my attempt at technical analysis. The thing looks to me like its going higher:
