Interest rate moves are determined by marketsMonetary policy falls under the jurisdiction of the BOJGovernment will continue to work closely with the BOJWill not pursue fiscal policies that undermine market confidenceClosely monitoring market movements with high sense of urgencyAlways monitoring daily market moves, economic indicatorsWill take appropriate action on FX at all times as needed
This is just more verbal intervention and jawboning to try and keep traders in check. But of all things that is helping, I would say that the softer US jobs report is definitely the biggest factor as we look to end the week.
That is definitely helping to give Tokyo officials some added breathing room with the dollar also dropping off across the board. That and the fact that intervention risks remain heightened given the thin liquidity conditions expected later in the day.
USD/JPY trades down 0.2% today to 160.78 currently but unless there is a material shift in the fundamentals, the path of least resistance is still for a move higher for now. That is until Japan steps in to hammer down price action for a bit with their intervention play.
This article was written by Justin Low at investinglive.com.