USD/JPY Bounces as Intervention Fades, Societe Generale Sees Growth as Key to Yen Recovery

The USD/JPY currency pair traded modestly higher on Tuesday after a softer US Dollar, as the impact of recent intervention began to fade and the Japanese Yen came under pressure again.

The pair recovered from its lowest level since May 6, reaching around 157.60 at the time of writing.

Analysts at Societe Generale argue that a lasting recovery in the Yen will hinge on domestic growth rather than policy theatrics.

'What will trigger a durable yen rally will be a rise in consensus forecasts of Japanese growth, rather than more, bigger intervention,' they said.