The rapid drop in the yen likely to be met by some sort of attempt at verbal intervention

<p>The rapid drop in the yen is likely to be met by some sort of attempt at verbal intervention from Japan's Ministry of Finance and/or the Bank of Japan and/or senior government officials. </p><p>These could come along at any time now, today, tomorrow, it won't take much to trigger them. </p><p>Along the lines of:</p><ul><li>Important for FX to move stably reflecting the fundamentals
</li><li>Will respond appropriately to FX moves if necessary
</li><li>Won't rule out any options for response to FX moves
Expect</li><li>Share mutual understanding with international authorities that excessive FX move undesirable</li></ul><p>We had these sorts of verbal intervention comments in 2023 as the yen lost ground. While they may be more prevalent above USD/JPY 150 it's the speed of the yen move that'll trigger them, not necessarily levels. </p>

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