USDJPY has put in good work to form a top. Economists at TD Securities expect the pair to trade below the 140 level.

FX intervention above 150 is likely

“USDJPY is in the process of forming a top.”

“FX intervention above 150 is likely.”

“We still think the BOJ wants to maintain a stable but weak currency to encourage inflation pass through, but a tweak to YCC will introduce downside pressure in USDJPY.”

“Rate spreads still keep elevated pressure on USDJPY, but a tweak to YCC will help to ease some of that in what has otherwise been a crowded trade. We would not rule out FX intervention should the yen strengthen too much post YCC shift.” 

“Position for a trading range sub-140.”