Yen's Surge Against Dollar Triggers Anticipation of BOJ Intervention
The Japanese yen breached the 145 mark against the US dollar, prompting expectations of intervention by the Bank of Japan (BOJ). HSBC predicts that the Japanese Ministry of Finance will push back in the 145-148 range, but if intervention does not occur, short positions on the yen may be rebuilt. The US dollar has also been on an uptrend, supported by high longer-end US yields and concerns about the US budget deficit and Treasury supply. Japan's upcoming GDP and inflation data may further impact the forex market.