Whispering sweet intervention warnings in Japan

A reminder of the BoJ’s intervention tendencies, from Nomura:

And yes, they really might pull the trigger — what with Y100 against the dollar being broken this morning as Brexit roiled everything — just not quite yet.

From Nomura after the FinMin’s press conference in Tokyo:

Finance Minister Aso had a quick press conference where he repeated that the government is watching the FX market urgently. He also said he is very concerned about the impact on global economy and can take appropriate action on FX if needed. However, he declined to comment on whether there was intervention or not. In addition, although he said the FX market is nervous, he did not use stronger expressions such as “disorderly” (Figure 1). The level of verbal intervention has not materially increased from his previous comments, even though USD/JPY broke the important 100 level. Solo FX intervention by Japanese authorities at the current level around 100 is still unlikely from his comments, and further appreciation of JPY to the 95 level against USD would be necessary for Japan to embark on FX intervention, in our view.

Mr Aso also declined to comment on joint intervention.

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