Stealth intervention talk permeates market as yen approaches ¥150 | Japan Times - Oct. 19, 2022 |

The yen carried on its seemingly inevitable decline toward ¥150 per dollar, as traders scoured intraday moves for evidence of subtle intervention from Japan.

Twice in under a week investors have seen sudden bursts of yen strength as it edged to fresh lows, spurring speculation that officials are subtly intervening to support the currency. The yen traded around the ¥149.30 level Wednesday, after weakening to ¥149.38 on Tuesday in a volatile session which included such a spike.

"The move seems to have been driven off of electronic flows rather than `voice' driven flows which points to `stealth' intervention," Brad Bechtel, global head of foreign exchange at Jefferies, wrote in an Tuesday note. "Maybe they are warming up to defend ¥150.00 as the next big psychological level above."

Market-watchers expect Japan to focus on the pace of the yen's decline rather than any particular number. But ¥150 is seen as an important psychological level in Japan and a break may increase pressure on authorities for further action.

The yen has tumbled about 23% against the greenback this year thanks to a yawning monetary policy differential between the United States and Japan. The currency has wiped out last month's intervention-driven gains despite a $19.5 billion spend and a barrage of warnings from authorities trying to dissuade traders from testing their resolve.

Japan spent ¥2.84 trillion in September intervention to prop up yen