20 October 2022 | Other

The yen has reached the key level of 150 against the dollar. Markets prepare for intervention

Shunichi Suzuki, Japan's finance minister, said Thursday that he would take "decisive steps" to combat excessive volatility in the currency market. Japan is thus renewing its threat to intervene, which was triggered by the yen falling to a 32-year low and the currency approaching the key barrier of 150.

As a measure to protect the 0% bond yield limit, the Bank of Japan put forward an emergency bond purchase offer. It is a demonstration of its willingness to maintain an ultra-low interest rate policy.

Such actions by the central bank indicate that Tokyo is facing the difficult task of trying to keep the yen down without raising interest rates, which could undermine Japan's fragile recovery.

While market participants' concerns about intervention have led to a slowdown in the yen's decline, analysts predict the currency will continue to decline as long as the Bank of Japan maintains a dovish policy amid a global wave of central bank rate hikes.

Company MarketCheese
Period: 17.07.2026 Expectation: 500 pips
Buying Brent crude with $80 target
10 July 2026 50
Period: 31.08.2026 Expectation: 600 pips
Invest in AUDCAD up to 0.9900
10 July 2026 37
Period: 17.07.2026 Expectation: 745 pips
USDCAD keeps its downside potential on fading upward move
10 July 2026 32
Period: 10.08.2026 Expectation: 4000 pips
Selling GBPUSD on weak UK economy
10 July 2026 22
Period: 18.07.2026 Expectation: 725 pips
AUDCAD sets sights higher as new uptrend takes shape
10 July 2026 27
Period: 09.08.2026 Expectation: 250 pips
Selling ETHUSD down to $1,500
09 July 2026 64
Go to forecasts