On Thursday, investors should consider Bank of Japan forward guidance and Japanese government threats to intervene. Recent BoJ views on the interest rate trajectory have pressured the Yen. BoJ Governor Kazuo Ueda reiterated the need to support the economy for the BoJ to achieve its 2% inflation target. Market expectations of the BoJ holding interest rates at zero leave interest rate differentials firmly favoring the US dollar. The outlook for carry trades also favors the greenback, supporting the USD/JPY at current levels. In contrast, the Japanese government remains committed to preventing further Yen weakness. The ... (full story)