Update – I’ve seen at least two votes for 165 as the new ‘line in the sand’ for USD/JPY

Says ING:

• Japanese authorities are allowing USD/JPY to trade above the April FX intervention levels
• Previous comments from the top currency official hint the new line in the sand may be close to 165

Bank of America also nominate 165 as the new level for Japanese authorities to step in. BoA argue that if the Bank of Japan trim back on JGB buys (the BoJ indicated they’ll lay out a plan to do just this at the July meeting, on the 30th and 31st) that won’t be enough to support yen. BoA forecast USD/JPY at 158 at year end.

Its been a quiet start to the new week for yen so far. Its coming up to 8am and Tokyo and 7am in Singapore & Hong Kong so we should begin to get a bit more action soon.

This article was written by Eamonn Sheridan at www.forexlive.com.