According to Mizuho, the weakening of the Japanese yen (JPY) is a cause for concern, although the level of 150 in the USD/JPY exchange rate is not a definitive line in the sand. The article suggests that restrictions on the depreciation of the JPY will be in place as traders and investors will be cautious of potential intervention risks by the Bank of Japan (BoJ). Mizuho further states that if the US economic data performs better than expected, the BoJ may slow down the pace of JPY depreciation rather than enforcing a strict barrier at 150, particularly due to escalating energy prices. Overall, Mizuho expects the USD/JPY to remain above the 148 level.
Commenting on Mizuho’s viewpoint, the author agrees that 150 is merely a round number and not a rigid threshold for the USD/JPY exchange rate. This implies that the significance given to this particular level should be taken into consideration with caution. The article does not provide any additional information, but it references a video that seemingly complements the content.
In summary, Mizuho expresses concern about the weakening of the JPY and notes that the level of 150 in the USD/JPY exchange rate is not a definitive line. They anticipate restraint on the depreciation of the JPY due to intervention risks and suggest that the BoJ may adjust the pace of depreciation depending on the performance of the US economy and rising energy prices. The article concludes by emphasizing that 150 is not an absolute threshold and shares agreement with Mizuho’s viewpoint.
