USD/JPY is nearing the 151 level. Economists at MUFG expect the pair to continue grinding higher.

A break of 150 remains orderly

“The lack of action by the MoF certainly will likely encourage a pick-up in yen selling over the coming weeks. The risk of action will persist of course but Japan’s efforts to highlight that no particular level is being protected means there is scope for this relatively orderly grind higher in USD/JPY to continue.”

“We can’t see intervention working until we at least get to the point when market participants can be confident of a shift from the Fed.”

“New cyclical highs for US Treasury bond yields mean new highs for USD/JPY.”