ANZ is targeting 150 on USD/JPY, but is wary of verbal yen intervention

Following up on this from last week:

More:

ANZ … targeting a move toward 150. The bank believes that this trajectory will hold unless there’s a substantial shift in the rate outlook for either the U.S. or Japan. While intervention from policymakers could pose a risk, ANZ anticipates that mere verbal intervention, or “jawboning,” will suffice until the 150 threshold is reached.

Key Points:

• Rate Outlook: ANZ suggests that a significant change in the monetary policy outlook for either the U.S. or Japan is a prerequisite for altering the bullish trajectory.
• Intervention Risks: Though ANZ acknowledges the possibility of intervention by policymakers to stabilize the currency pair, they believe the threshold for action is likely around the 150 level.
• Jawboning: ANZ predicts that until the 150 mark is breached, authorities are likely to rely on verbal interventions rather than actual market interventions to influence the currency’s trajectory.

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