Yen Speculators Bow to Japan’s Stealth Strategy as CPI Looms
- Undisclosed intervention, policy resoluteness seen buying time
- Market moves also aiding yen; US inflation to offer fresh test
This article is for subscribers only.
Japan is enjoying some success in its battle with speculators targeting the enfeebled yen and the central bank’s stubborn grip on yields, but more tests lie ahead.
After months of jawboning turned into concrete action in the foreign-exchange market, speculative positioning has been pegged back at least in the currency space. Together with a favorable reduction in demand for the greenback, that has kept the yen well away from the key 150 per dollar mark in recent weeks, though US inflation data Thursday is an imminent threat.