USD/JPY has reached the intervention zone and it looks like appetite to buy at these levels is receding. 

The rhetoric from the MoF this week is not yet at a level consistent with imminent intervention. The Obon vacation period was earlier this week and it may be that next week we will see a pick-up in verbal opposition ahead of the Jackson Hole symposium from 24th-26th August. 

We continue to believe that there is limited upside for USD/JPY from here and there are more attractive ways to benefit from US Dollar strength than buying USD/JPY.