USD/JPY has fallen below the 144.00 level as Japanese policymakers are becoming more concerned by recent yen price action. However, economists at MUFG Bank expect only a temporary pullback for the US dollar.

Risk of JPY intervention

“USD/JPY has been moving closer to the highs from 1998 when Japan last intervened to support the yen. The heightened risk of intervention should help to ease the pace of the yen sell-off in the near-term.”

“Market attention will now turn to comments from Fed Chair Powell later today when he speaks at a panel discussion on monetary policy in Washington. At the current juncture, we view the pullback for the US dollar as temporary.”