Japanese Yen : Intervention support and rate path – Rabobank
The post Japanese Yen : Intervention support and rate path – Rabobank appeared on BitcoinEthereumNews.com. Rabobank’s Senior FX Strategist Jane Foley discusses the Japanese Yen (JPY), noting that expected endorsement from the United States (US) Treasury for recent Ministry of Finance (MoF) FX intervention should support the currency in the near term. However, Foley argues USD/JPY will only convincingly move lower if Japan’s fundamentals strengthen further and the Bank of Japan (BoJ) continues tightening policy, alongside a dovish Federal Reserve (Fed) outlook. Yen support hinges on policy trajectory “The visit of US Treasury Secretary Bessent to Japan this week is widely expected to bring an endorsement of the MoF’s recent FX intervention.” “Confirmation that the US Treasury has supported the recent steps taken by the MOF to support the JPY would likely keep it underpinned in the near-term.” “Further out, however, the market will need greater reassurance regarding a strengthening in Ja