Expect The Next Intervention If USD/JPY Falls Into This Range - Deutsche Bank

Japan's MoF has long maintained that as the yen is a major currency alongside the dollar and euro, forex market intervention should be avoided as much as possible, notes Deutsche Bank.

"Nevertheless, it did undertake a unilateral intervention on three occasions in 2010-11 (in addition to coordinated intervention action in March 2011), thought to be at the behest of the then-ruling Democratic Party. The present LDP administration may also push for an intervention," DB adds. 

"A slump in the USD/JPY below ¥100 could spark a stock market downturn, which could severely harm the credibility of Abenomics prior to the Upper House election in July. We expect authorities to intervene in forex markets if the USD/JPY falls to the ¥105-110 range," DB argues.

PS: Copy signals and Earn on  https://www.share4you.com/en/?affid=0fd9105