The Fed is rumored to have “checked rates” in USD/JPY.
Essentially, they call a few banks and ask for quotes in USD/JPY, which traders take as a show on concern. The BOJ’s NY office typically would handle that duty, but the finger is pointing at the Fed today…
USD/JPY ramped over a JPYto 77.72 from 77.65 lows after the employment report and now trades at 78.20.
IS the BOJ concerned about USD/JPY? You bet. Will they intervene in the face of tumbling global interest rates and massive risk aversion? Not if they have a brain in their heads…Perhaps when the situation improves, but to intervene now would be pissing into the wind, to put it bluntly.
