© Reuters. Forex awaits BoJ intervention as the yen approaches 150
Arabictrader.com – Investors in the forex market remained on alert during Monday’s trading for a possible support intervention from the Bank of Japan, after the Japanese currency hit a 32-year low against its American counterpart. and the Japanese yen approached the key psychological level of 150 against the dollar after 9 weeks of consecutive losses.
Japanese Finance Minister Shunichi Suzuki reiterated to reporters on Monday that Japan is ready to act decisively if there are any speculative moves in the JPY forex market.
Some strategists have indicated that Japanese officials would not necessarily have a certain level that would prompt them to intervene again and support the Japanese yen, and that they would mainly focus on the rapid decline in the Japanese yen exchange rate.
But others have also said that 150 is a key psychological level for Japanese officials, and a USD / JPY breakout is likely to increase pressure on the domestic government to step in and support the currency again.
Goldman Sachs (NYSE 🙂 strategists wrote that while the Ministry of Finance will likely not hesitate to step in and support the Japanese yen if necessary, the need for such measures now appears less clear, as long as the pair’s volatility remains weak,
Goldman Sachs analysts noted that the magnitude of the yen’s decline may be more limited from here as price risks appear more even at current levels.
The US dollar / Japanese yen pair is currently trading at the 148.85 yen level, exactly at 11:15 GMT.
