Mizuho on USD/JPY at 150:
- Admittedly, the continued JPY weakness is a concern. While 150 remains a closely watched figure, it is not a clear line in the sand.
- JPY weakness will be restrained as JPY bears will be wary of intervention risks.
- Simply put, should the US economic data outperform, the BoJ will likely check pace of JPY depreciation rather than maintain a wall at 150 especially amid rising energy prices.
- All in, the USD/JPY to remain buoyed above 148
Decent commentary from Mizuho. I agree, 150 is a round number, not a hard and fast line.
