#USDJPY @ 142.343 to carve out a range in the 140-145 area for now – TDS
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After several rounds of warning and nearly 25 big figures later in USD/JPY, Japan finally stepped up to the plate and intervened on the yen. At this juncture, 140-145 in USD/JPY seems a plausible trading range for the time being, economists at TD Securities report.
“Japan finally stepped in to intervene in the currency. We have long held the view that ‘yentervention’ is a losing proposition. Surely the MOF/BoJ look to their peers and recognize that this has indeed been the case.
“Lost in the noise of intervention was a rather notable shift in the BoJ’s stance on inflation. Specifically, they noted that there are signs of underlying inflationary pressures building. We think this is a rather notable inclusion.”
“With the likely recognition that intervention is not a feasible long-term solution, the BoJ may be gearing up for an earlier shift in YCC than widely perceived by the market. As such, October should be viewed as closer to being a live meeting in a very long time.
“For now, we think USD/JPY will attempt to carve out a range in the 140-145 area for now.”
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