USD/JPY: Yen’s oversold conditions and threat of interventions a to exacerbate any downside corrections – ING

USD/JPY is trading on the soft side. Economists at ING analyze the pair’s outlook.

Missing enough volatility to worry Japanese officials

Incidentally, the pair is well into FX intervention territory but is probably missing enough volatility to worry Japanese officials. 

Still, the oversold conditions of the Japanese Yen and the threat of interventions are likely going to exacerbate any USD/JPY downside corrections.

See: 

• USD/JPY: In the danger zone for intervention to halt the move higher – MUFG
• USD/JPY to trade lower beyond the near term – OCBC