Japanese authorities have today intervened to sell USD/JPY for the first time since 1998. Economists at ING expect the pair to see a volatile 140-145 trading range.

Investors to be happy to buy dollars on dips near 140-141

“Clearly, investors are going to think twice about paying for USD/JPY over 145 now. And one can argue that we will now enter a volatile 140-145 trading range.”

“But expect investors to be happy to buy dollars on dips near 140-141 knowing that Tokyo will find it impossible to turn this strong dollar tide – a tide that should keep the dollar supported through the remainder of this year.”