Standard Chartered shared some of their thoughts on possible Yen intervention:
- Expecting intervention above 152, but actual line in the sand likely somewhat higher and variable.
- As markets are stretched short JPY the intervention should succeed, but Japan might have to spend more than they did in 2022.
- A strong beat in US CPI that forces US yields higher could diminish effectiveness of intervention.
- JPY short positioning at highest since 2007 but don’t expect intervention until US CPI and post-CPI reaction has played out.
