The Yen is trading flat near 131.80 after trading as low as 130.60 yesterday. Break below the August low near 130.40 would set up a test of the May low near 126.35, economists at BBH report.

BoJ to hike in 2023

“Now, all bets are off as markets rightfully price in a BoJ hike in 2023.”

“The August low for USD/JPY near 130.40 is a foregone conclusion. After that is the May low near 126.35. After that is the March 31 low near 121.30 but let's get to 125 first and then we can talk.”