USD/JPY: Suspicious spike suggests BOJ intervention

USD/JPY has popped over 70 pips to briefly drive above the 115.00 before losign it again, in what appears to have been intervention by the BOJ, as the pair now trades below the 115.00 level, which appears to be the line in the sand drawn by Japanese officials.

It is well known within the inner circles of the exports community in Japan that a Yen appreciation against the USD past the 115.00 is undesirable. That said, BOJ officials have learnt over the years that no matter how much intervention takes place, fighting the market tends to be a suicidal proposition.