Barclays on what's driving yen selling (spoiler: carry trade). And an intervention warning

<p>Barclays analysts say their modelling indicates the recent decline is not explained by rates or equities, but it's the resurgence of the carry trade that's responsible. Which is a rates story anyway, right?</p><p>Barlcays project a change though, forecasting USD/JPY towards 130 by the first half of 2024:</p><ul><li>"The policy divergence story is going to turn, if it hasn't already" </li></ul><p>In the shorter term, a mild intervention warning:</p><ul><li>"The risk of intervention definitely increases above 145, but the urgency is less."</li></ul><p>USD/JPY update, still climbing:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.