USD/JPY: Dollar Pressure Remains as Weaker Yen Tumbles Toward ¥150.00 Mark

The USD/JPY is in a cliffhanger moment, dangerously floating around the intervention mark. What’s next? Not much that markets are aware of.

  • The USDJPY pair extended its consolidation early Monday, drawing closer to the key ¥150.00 level. The threshold has shaped a crunch time for markets as Japan officials have previously signaled that they may intervene with a yen-buying spree to shore up the value of their local currency.
  • The dollar climbed to a recent high of ¥149.93 as markets stay in a nail-biting mode, awaiting a possible drop in the exchange rate if an intervention is enacted. Too cheap a yen is generally good for exports, but it lifts import costs, threatening to derail certain supply chains that uphold the local economy’s cash and product flows.
  • With that in mind, not much is unveiled, or about to be unveiled, to market participants this week. An unusually quiet calendar is unfolding for the USD/JPY. Thursday will bring the US GDP growth for the third quarter. Analysts expect a solid 4.1% expansion, up from a previous 2.1% growth rate. That said, keep an eye for breaking news out of Japan as officials may decide to step in with a surprise monster purchase of yen.

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