Breaking: USD/JPY breaks 135.00 the figure, BOJ intervention sentiment builds
USD/JPY has broken 135 the figure in Asian trade at the start of the week.
On the monthly chart below, the prior highs from Jan 2002 are located at 135.16 and its blue skies above there to 147.67 and the 1998 summer highs:
The yen has been sold off sharply by bears that have been motivated by the Bank of Japan's dovish rhetoric, announcing that it will stick with its ultra-accommodative policy stance despite the Federal Reserve and other central banks that are accelerating their tightening to tame inflation.
Also read: USD/JPY leans bullish around 20-year high on upbeat options market signals, pre-Fed caution
''The BOJ has made it clear that it will stick to its easy policy settings until it believes that core inflation in Japan can stabilize around the 2% level. There is a chance that an adjustment in the BOJ’s yield curve control policy could come in the autumn,'' analysts at Rabobank said, noting that this month's meeting, June 17, will be closely eyed for any change in policy guidance.
Meanwhile, Japan's government and the central bank said on Friday they were concerned by recent sharp falls in the yen in a rare joint statement, Reuters reported.
''This was the strongest warning to date that Tokyo could intervene to support the currency as it plumbs 20-year lows.''
''The statement underscores growing concern among policymakers over the damage that sharp yen depreciation could inflict on Japan's fragile economy by hurting business activity and consumers.''
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FXStreet Team
FXStreet
