With the yen breaking down lately, Japanese authorities have stepped up their warnings about FX intervention. However, the conditions for intervention are not fully present yet, as the moves in USDJPY in particular have not been sharp enough. For the yen to stage a lasting recovery, it might require some policy tightening from the BoJ or an episode of panic in global markets instead. It’s been a dreadful year for the Japanese yen, which has been ravaged by the Bank of Japan’s refusal to tighten monetary policy. With most other major central banks raising interest rates in a hurry, the rate gap has widened, making the ... (full story)