Westpac see higher for USD/JPY, highlighting monetary policy divergence. WPAC warn of verbal intervention for Japan's Ministry of Finance though:

  • With the Fed set to execute a series of 50bp moves, and commence an aggressive QT program next week, it’s hard to imagine that we have seen the highs for USD/JPY, and sustained trade above 130 appears just a matter of time.
  • We would have to argue that a move to 135 is not outside the realms of possibility, though of course would expect to see topside barriers being defended and MoF commentary as factors that may slow the pace.

Earlier post:

Goldman Sachs says the yen is going to fall further, with or without BOJ intervention

commodity price