BOJ intervention to support the JPY could get a boost from 'risk off' sentiment

<p>Comments on wariness over Bank of Japan intervention via Mizuho:</p><ul><li>It would be unwise to project the BoJ’s restraint on premature tightening as a green light for aggressively shorting the JPY. Intervention risks are clear and present</li><li>the MoF is intent on keeping speculators at bay. Which means that the temptation to lift USD/JPY above 149 to test 150 will have to answer to the sharp end of the MoF’s interventions. And speculators will be well-advised to be wary. </li><li>despite higher UST yields (that pressures JPY), “risk off” sentiments could squeeze JPY funded carry and boost JPY from haven demand. And if the MoF leverages on this , short JPY speculators could hurt a lot more.</li></ul><p>Bank of Japan Governor Ueda and Finance Minister Suzuki are trying to stand inn the way of a still weaker yen</p>

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