Post #15648

BoJ Officials Say No Level in Mind, It's About Speed USD/JPY continues to push higher, with the yen sliding to its weakest levels since July 2024 as political risk in Japan takes center stage. Reports that Prime Minister Takaichi may dissolve the lower house ahead of elections have weighed on the yen, as markets price in the “Takaichi trade” — more fiscal stimulus, higher bond yields, stronger equities, and a weaker currency. Intervention risk is now firmly on the radar. Traders are eyeing the 160 level as a key psychological zone, though officials have stressed it’s less about the exact level and more about the speed of depreciation. Japan’s finance ministry has already flagged concerns with U.S. counterparts, keeping the threat of direct action very much alive. - Alan