US-Japan Joint Intervention Bolsters Yen Outlook, MUFG Says
The yen gained after the US and Japan intervened jointly to calm volatility, with MUFG’s Lee Hardman highlighting supportive measures including the Fed’s FIMA repo facility and US euro-to-yen reallocations.
USDJPY
The Japanese yen has strengthened following a rare joint intervention by Japan and the United States, according to MUFG strategist Lee Hardman. The move, aimed at curbing excessive currency volatility, has improved the near-term outlook for the yen.
Hardman also pointed to several structural factors that could provide additional support:
- Planned use of the Federal Reserve’s FIMA Repo Facility.
- US reserve reallocations from the euro to the yen.
- Japan’s considerable foreign-exchange reserves.
Source: FXStreet Forex News