Nomura predicts that Japanese authorities are likely to intervene in the currency market to support the Yen if USD/JPY reaches the 161 to 163 range. Japanese authorities have stepped up verbal intervention after USD/JPY briefly rose above 160. Middle East tensions and high crude oil prices are contributing to persistent upward pressure on USD/JPY. The Yen may find near-term support if the BOJ branch managers’ meeting increases the likelihood of an April rate hike.
