Traders are spoiling for a fight over the yen
After historic US-Japan intervention on the currency, the risk of market ructions is again rising
Source: Financial Times
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DW NOTE
Japan burned reserves in 2022 defending ¥150; that line held until it didn't. The question now is whether Tokyo will burn more to defend whatever the new line is, or whether the market has finally learned that no central bank wins a two-sided fight against its own bond yields and a rising dollar. The BOJ holds rates at 0.25% while US CPI prints 3.4% — arbitrage doesn't care about intervention history.