Yen Weakness Persists After Joint Intervention

The Japanese Yen has weakened slightly in Asia, causing USD/JPY to rise towards its 200-day moving average at around 158.00 after a joint intervention by Japan and the US.

MUFG's Lee Hardman notes that this joint action may provide temporary support for the yen, but fundamental changes are needed for a sustained recovery.

The BoJ policy normalization is expected to be faster as part of the joint intervention arrangement, which would help reverse the yen weakening trend that has been in place over the last five years.