Justin had the news as it hit on Friday:

Reuters have a follow-up piece posted with some remarks out of Tokyo on levels and potential co-ordinated intervention (not expected):

  • "Tokyo could intervene if the yen slides below 135 to the dollar and starts going into a free fall. That's when Tokyo really needs to step in," said Atsushi Takeda, chief economist at Itochu Economic Research Institute in Tokyo.
  • "But Washington won't join so it will be solo intervention. For the United States, there's really no merit in joining Tokyo on intervention."

I mentioned 135 as a level last week, but said it was my wild-ass guess. I suspect maybe this 135 is pretty much the same, but hey, maybe not. I think the key words are "if the yen ... starts going into a free fall". "Free fall" is what we'll have to interpret. Looking at the chart below .... what's it gonna take???

With the US CPI data on Friday sending yields into the opposite of a free fall (ie. they are surging) ready yourselves for a push at 135 and above for USD/JPY in the week to come.

usdyen chart free fall 11 June 2022