Scotiabank: JPY Outperforms as Intervention Threats Mount According to Scotiabank strategists Shaun Osborne and Eric Theoret, the Japanese Yen (JPY) is showing significant strength, gaining 0.3% against the USD and outperforming most G10 peers (trailing only NOK and NZD). The rally is largely driven by escalated warnings from the Ministry of Finance. Following initial comments from the Vice Minister, Minister Katayama has now threatened “bold action” to curb volatility.
- Target Levels: Officials appear to be defending the 159 level, aiming to push USD/JPY back into the 154.50–158.00 range.
- Bond Market: JGB yields continue to rise, with 2Y yields surpassing 1.20% and 10Y yields eyeing 2.20%.
