Yen Suddenly Spikes Sparking Intervention Chatter

Having broken hand held above 160/USD, this morning (as the G20 meeting comes to an end), the yen is suddenly spiking higher, prompting desk chatter of another intervention...

“The market remains on high intervention alert,” said Alex Cohen, a foreign-exchange strategist at Bank of America.

There was no obvious news or macro catalyst for such a move, and for now, there is no follow through but it appears 160 is the new line in the sand for the Bessent/BoJ plunge protectors.

Some traders suggested it was a simple stop-hunt (which could still be instigated by 'authorities').

“We hear rumors that this is intervention, but I am skeptical based on the size of the move,” said Andrew Hazlett, a foreign-exchange trader at Monex Inc.

Still, the moves in the yen against the dollar and euro “could not be explained otherwise.”

The magnitude of the move, however, fell short of those seen about a month ago, when Tokyo and Washington joined forces to support the yen to a degree unseen in decades, raising the stakes for anyone betting against the currency. Their first coordinated yen-buying operation since 1998 sparked a rally of about 5% from the weakest level in around four-decades near 164 per dollar, with both governments signaling further joint action if needed.