USD/JPY back nudging towards 150 – Japanese (verbal) intervention has started already

<p>The USD jumped higher in Thursday trade following the inflation data. ICYMI:</p><p><a href="https://www.forexlive.com/news/us-september-cpi-37-yy-versus-36-yy-expected-20231012/" target="_blank" data-article-link="true">US September CPI +3.7% y/y versus +3.6% y/y expected</a></p><p>And:</p><ul><li><a href="https://www.forexlive.com/technical-analysis/the-usd-is-surging-after-stronger-cpi-a-crummy-auction-and-a-surge-in-yields-20231012/" target="_blank" data-article-link="true">The USD is surging after stronger CPI, a crummy auction and a surge in yields</a></li><li><a href="https://www.forexlive.com/news/us-indices-snap-4-day-win-streak-as-concerns-about-cpi-and-us-debt-increase-fear-20231012/" target="_blank" data-article-link="true">US indices snap 4-day win streak as concerns about CPI and US debt increase fear</a></li></ul><p>USD/JPY is back on approach to 150:</p><p>It seems likely there will verbal intervention comments from Japan during the session here today. And note that such intervention started already overnight. A senior Japanese finance ministry official attending the G7 finance leaders' gathering in Marrakech highlighted that the Group of Seven (G7) statement:</p><ul><li> reaffirmed the group's shared understanding that excess currency volatility is problematic</li><li>and that exchange-rate moves must reflect fundamentals</li></ul><p>If there is anyone in Marrakech reading this could you let this official know that the huge yield differential between the US and Japan that's driving USD/JPY higher IS a key fundamental. TIA. </p>

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