The BOJ’s policy decision kept financial markets relatively calm, but the yen
remains near historic lows. On Tuesday USD/JPY’s intraday range was just 0.43
yen, the smallest on a BOJ meeting final day since Jan 2021. Wednesday morning
USD/JPY was still above 160, close to the level that triggered late-April MOF
intervention to support the yen. Investors are watching for further intervention
after Finance Minister KATAYAMA said her team stands ready to act if needed. A
Mitsubishi UFJ strategist said: "Given continued verbal intervention from MOF
officials, many investors remain wary of actual intervention risk. Therefore we
continue to expect USD/JPY to trade within a range."
