The yen has continued to weaken with USD/JPY breaking above the high from back in January 2002 at 135.15. Economists at MUFG Bank believe that the pair could climb as high as 140.

Intervention risk rising as USD/JPY climbs above 2002 highs

“The break above 2002 highs at 135.15 provides a further bullish signal for the USD/JPY in the near-term and could trigger an acceleration of yen weakness by encouraging speculation of a return to the highs during the Asian Financial Crisis when it last climbed above the 140.00-level.”

“Overall the fundamental developments continue to favour further yen weakness it the near-term but market participants will be more wary of the risk of intervention and/or a hawkish shift in BoJ policy in the week ahead.”