We would need to see a break of the 150 level in order to spark greater market volatility that could be used to justify intervention. That implies we could see a sharp bounce above 150 initially but then a reversal as Japan intervenes to halt Yen weakness.

We have a neutral bias for the period ahead for USD/JPY reflecting the potential for an upside move initially but also reflecting the unlikelihood that a break higher would be sustained for long.

Increased volatility and higher trading ranges are likely if USD/JPY does break higher through the 150 level.