USD/JPY Surges Through 162 as Traders Question the Effectiveness of Yen Intervention
USD/JPY has become one of the most actively traded markets from clients on the day, with the break above ¥162 triggering option barriers, stop-loss orders and renewed momentum in favour of the US dollar. While some tactically minded traders attempt to position short, and to be on the right side should another round of JPY-intervention out, the market increasingly believes unilateral action from the Japanese Ministry of Finance will fail yet again to reverse what has become a structurally driven move. With Fed Chair Kevin Warsh speech as the ECB Forum and US nonfarm payrolls looming, interest rate expectations, carry trades and central bank credibility remain the dominant forces shaping the next move.
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