Goldman Sachs says the yen is going to fall further, with or without BOJ intervention

Via a Goldman Sachs note on the Japanese yen, GS says the depreciation of the yen will continue as long as

• the BOJ sticks with its loose monetary policy and its yiled curve control
• & US yields continue to rise

Will intervention save the yen from further falls? Nope:

• “We find it hard to see intervention driving a sustained appreciation without any shift in yield curve control expectations,”
• “With risks to yields still skewed to the upside, FX intervention seems likely to be less effective.”

The GS note says there is a high risk of intervention. But says yen strength will come if the BOJ reveiews its YCC settings and the rate differential to the US drops by 40 or bps.

USD/JPY JPY The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by Read this Term has been soaring, the BOJ gave it renewed impetus higher yesterday:

• USD/JPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term up 2% to 131.00 as yen capitulates further
• USD/JPY hits 130.00 for the first time in 20 years
• BOJ plays a dangerous game, yen lock and loaded for the next leg lower
• BOJ's Kuroda: Desirable for currency to move stably reflecting economic fundamentals
• BOJ's Kuroda reaffirms bond market operations is to ensure cap on 10-year yields target
• BOJ's Kuroda: Consecutive bond buying operations is to avoid speculative market moves