We see two conditions necessary for a sustainable reversal in the JPY – Societe Generale

Economics at Societe Generale raised doubts on the ability of the Bank of Japan’s (BOJ) intervention to reverse the USD/JPY bull run while citing two needed conditions.

Among them, the BOJ’s abandonment of the curve control becomes the first.

Further, a recession unfolds in the US and causes US Treasury yields to fall was cited as the second necessary action for the USD/JPY to reverse.

It should be noted that the latest chatters over the BOJ intervention were also targeted by the analysts as, “Unilateral intervention could keep USD/JPY from scaling new highs but won’t be enough to reverse the downtrend.”

USD/JPY sellers attack 143.00

USD/JPY remains pressured around the intraday low near 143.00 while paring the consecutive fifth weekly gains.

Also read: USD/JPY oscillates around 143.50 as investors await fresh development on BOJ intervention