JPY Daily News

No Follow-up Intervention by MOF

Last Monday's intervention in the foreign exchange markets by the Japanese Ministry of Finance (MOF) seems like a distant memory as events in Greece and Italy have overshadowed the unilateral intervention. Rumors were heard of additional intervention on Tuesday but those rumors proved to be false. It is speculated that the most recent G20 meeting would keep Japanese officials from further moves though the G20 meeting proved to be underwhelming with no change in the official statement regarding currency levels.


It should be noted that following the latest round of intervention, movement in the USD/JPY has dropped considerably when compared to the August intervention. This may be due to a number of factors; a reduced spread between US and Japanese bond interest rate differentials, exporters were given the opportunity to change USD to JPY at a more attractive price during Monday's intervention and has thus reduced demand, and worries over additional intervention by the MOF to weaken the JPY. As such the USD/JPY has support at the post intervention low of 77.75 and resistance at the post intervention high of 79.50.

Current Time: 05/26 22:42 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
11/07
	05:00	JPY	Leading Indicators		103.8%	96.3%	91.6%