WP: JPY Outlook

From the FXWW Chatroom: Combination of short covering ahead of weekend and comments from Japan Econmin Ishihara that he didn’t see any factors that would cause the yen to rise, that the government were watching moves closely by speculative players and that the govt will take actions if rapid yen moves as this is undesirable. The Ishihara comments timed well with a bounce from 108.40 to 109.00. Yesterday I highlighted some of the reasons that Japan could claim intervention would be justified under the G7 commitment on exchange rates and Ishihara ticked the boxes on 3. Looks like normal service will be resumed next week for a stronger yen again and market only targets 105.00-100.00 as a possible intervention zone.

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