Yen headed higher as prospects for intervention recede – Nikkei Asian Review

Today’s Nikkei Asian Review carries an article titled ‘Yen headed higher as prospects for intervention recede’, which states fading prospects of intervention threatens to remove whatever little downward pressure still remains on the Yen.

Key points

The market considers repeated promises of intervention "a sign that authorities can no longer actually intervene the currency market, like past actions totaling several trillion yen," said Koichi Fujishiro of Dai-ichi Life Research Institute

The US government's stance is for a softer dollar, which has shackled policymakers around the world," said Yunosuke Ikeda of Nomura Securities

The market is not expecting official intervention until the yen appreciates further. According to a survey of currency market players by Quick Corp. earlier this month, 34% anticipated yen-selling when the Japanese currency reaches 90-to-95 yen to the dollar, making it the most popular view among respondents.