USD/JPY Unwinds Amid Suspected MOF Intervention and Dovish Fed Comments

A sharp decline in USD/JPY has been triggered by suspected intervention from Japan's Ministry of Finance, coupled with less hawkish remarks from senior FOMC officials.

The pair has fallen back to levels seen around the lows of the intervention episode in late July and early August, and its correlation with US yields has surged.

New York Fed President John Williams said the case for a September hike 'isn't yet firm', while Governor Christopher Waller stated he would support keeping rates unchanged if August inflation data cools further.