Japan huffs and puffs but it isn’t taking USD/JPY down

In case you missed the tirade from Japanese officials earlier:

• Japan finance minister says groundwork laid to take appropriate FX action
• Japan finance minister Suzuki says the weak yen has pros and cons for the economy
• Bank of Japan Governor Ueda: Wage talks not the only determinant of monetary policy
• Bank of Japan Governor Ueda on what inflation needs to do for a BOJ rate hike

It has done little to really move the needle in USD/JPY, with the pair keeping around 154.70 levels at the moment.

I would argue that buyers will still err on the side of caution for the time being. It would require a key trigger to muster up the courage to push price and test the figure level at this stage. In that regard, it could likely come down to what the economic calendar has to say this week.

After the above comments, Japanese bond yields are on the up with 10-year yields at 0.892% – its highest since November last year. But that is still not fazing USD/JPY whatsoever.

So, buckle up. It could shape up to be an action-packed and volatile week for USD/JPY, that is if we get the right triggers.

This article was written by Justin Low at www.forexlive.com.