Japan’s Finance Minister Shunichi Suzuki warned again ‘we are watching market moves with a high sense of urgency…We will take bold measures against excessive moves without ruling out any options’. The BoJ last officially intervened to stem JPY weakness between September and October 2022.

In our view, it’s only a matter of time before USD/JPY breaks higher because we anticipate a gradual BoJ tightening process and a more muted than currently priced-in Fed easing cycle. 

The next major technical resistance for USD/JPY after the 151.95-152.00 zone is not before 160.00 (April 1990 high).