FXstreet.com (Barcelona) - Thursday's abrupt rally in USD/JPY off Y78.00 support, rather than driven by heightened fears of any possible BoJ intervention, according to NAB FX Analysts, it was due to "news that Japan’s Softbank is in talks to acquire a majority stake in US mobile operator Sprint and which could involve Softbank needing to buy some $12bn" the bank comments.
NAB adds: "The subsequent fall back from a high of Y78.59 follows a G7 meeting attended by Japanese FinMin Jojima and a Dow Jones interview with Japan’s economy minister Maehara and where it is clear there is no support from the US for Japanese FX market intervention. Maehara says Japan may intervene unilaterally to try rein in currency strength, a prospect that hold little fear for JPY bulls."
NAB adds: "The subsequent fall back from a high of Y78.59 follows a G7 meeting attended by Japanese FinMin Jojima and a Dow Jones interview with Japan’s economy minister Maehara and where it is clear there is no support from the US for Japanese FX market intervention. Maehara says Japan may intervene unilaterally to try rein in currency strength, a prospect that hold little fear for JPY bulls."
