Update – I have seen at least two votes for 165 as the new “line in the sand” for USD/JPY

ING says:

• Japanese authorities allow USD/JPY to trade above forex intervention levels in April
• Previous comments from the top official of the currency suggest that the new line could be close to 165.

Bank of America has also nominated Level 165 as the new level for Japanese authorities to intervene. The Bank of Japan says that if the Bank of Japan reduces its purchases of Japanese government bonds (the Bank of Japan has indicated it will develop a plan to do so at its July meeting). On the 30th and 31st) this will not be enough to support the yen. The Bank of Australia expects the USD/JPY pair to reach 158 by the end of the year.

It has been a quiet start to the new week for the yen so far. It is approaching 8am in Tokyo and 7am in Singapore and Hong Kong, so we should start getting some more action soon.

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