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USD/JPY whips lower on suspected intervention amid hawkish BoJ view

BBH said swaps pricing lifted the implied odds of a September BoJ hike to about 40% from 20%, supporting the yen after the selloff.

Reported · Written up by our desk · Major Pairs

Brown Brothers Harriman analyst Elias Haddad said USD/JPY briefly slid about five big figures to roughly 158.00 on suspected Japanese FX intervention, then rebounded near 161.00 before falling again, according to FXStreet.

The yen move came as the Bank of Japan kept its policy rate at 1.00% with a hawkish bias, with the BoJ upgrading its risk assessment.

Haddad noted that swaps now price higher odds for a September BoJ hike, with the implied probability rising to around 40% from 20%, which the note said offers support for the Japanese yen.

He also pointed to Japan’s Ministry of Finance release of its July report on Foreign Exchange Intervention Operations covering the period from June 29 through July 29.

Latest closeUSD/JPY 157.40 ▼1.7%

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