USD/JPY may remain sensitive to US rates – DBS

USD/JPY bounced back towards 149 and retreated slightly after the word, notes Philip Wee, FX analyst at DBS.

Intervention does not appear to be an imminent risk

“USD/JPY returns to 149 as PM Ishiba dissolves Lower House yesterday for Oct 27 election”.

“New Japanese Finance Minister Kato warned on Tuesday of the negative impact of sudden moves in the JPY, underscoring discomfort over renewed JPY weakness.”

“With speculative positioning still not very short, intervention does not appear to be an imminent risk, and USD/JPY could remain sensitive to US rates for now.”