Tokyo has failed to publicly confirm that it either 'checked rates' (a precursor to intervention) or indeed sold Dollars. Tokyo's silence may suggest they didn't intervene and the sharp sell-off could have possibly been caused by re-positioning after option barriers in USD/JPY were hit at 150.

There are no signs that US Treasury yields are near a peak meaning that even if intervention took place, USD/JPY could still go higher. However, we would say that the difficult external environment and the unwind of the carry trade will give the Yen some support on the crosses. Investors will also be reluctant to chase USD/JPY up through 150 near term.