JPY/USD Fell to 145, or Has it Approached the Level of Japanese Intervention?

The yen fell below 145 per dollar for the first time since November, close to the level last year when Japan intervened to prop up the currency for the first time since 1998. The recent fall in the yen has prompted government officials to remind people that they are monitoring developments and stand ready to act as markets begin to refocus on monetary policy differences between Japan and major economies. The widening gap between Japan’s loose monetary policy and the hawkish leanings of major central banks such as the Federal Reserve continues to weigh on the yen, with some analysts noting that the 145 level is important for officials. With Japan still in negative interest rates, a sharp rise in global yields is good for other currencies. Even so, policymakers and business leaders appear to be far more sanguine about the recent yen slide than they were last year, suggesting they may view any weakness as temporary.