USD/JPY, possible intervention at 75.00 zone – UBS

The Japanese yen has recovered some ground after the impressive NFP figures last Friday (+243K) climbing from the 76.20 region to last Monday’s high in the proximities of 76.75, closing the week slightly into the red territory.

M.Mohi-uddin, Managing Director of Foreign Exchange Strategy at UBS, suggests that the upbeat data in the US economy could push the US yields higher thus benefitting the cross.

However, an alternative scenario of a continuation in the risk-rally in the near term could turn the cross back to the downside, where the BoJ and MoF officials have been warning about an imminent intervention in case the appreciation of the yen drags the cross to sub 76.00 levels.
“With Finance Minister Azumi raising his rhetoric over the week, we expect the authorities will act if USD/JPY tests 75.00 again”, he finished.


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