ING: Intervention Risks Rise for Yen as USD/JPY Holds Elevated

ING strategists Francesco Pesole, Frantisek Taborsky, and Chris Turner note that the dollar has held onto gains following the latest Federal Reserve meeting, keeping USD/JPY elevated in the zone that historically attracts Japanese intervention.

The US holiday is expected to reduce liquidity, raising the probability of a sudden move by the Bank of Japan or Ministry of Finance to support the yen. The team cautions that intervention risk is on the rise as long as the pair stays at current levels.