BoJ Signals Possible Intervention as USD/JPY Rises
The Bank of Japan is monitoring the yen's weakness and has reiterated its readiness to intervene to prevent further depreciation, while USD/JPY continues to rise.
USD/JPY is extending its upward move, with the pair trading higher. The Bank of Japan remains in a watchful mode, but has repeatedly stated over recent weeks that it stands ready to take appropriate action to curb any further weakening of the yen.
Market participants are now weighing the likelihood of intervention as the yen slides. So far, no concrete steps have been taken, but the BoJ's verbal warnings have kept the possibility active.
The pair's direction in the near term will likely depend on whether the BoJ moves from words to deeds, or allows the current trend to continue.
Source: FXStreet Forex News