USD/JPY rose to 161.92 yen on expectations of a U.S. rate hike, then stalled amid warnings of intervention by Japanese authorities to buy the yen.

【6/22Market Overview

During Tokyo time, USD/JPY rose to around 161.71 yen due to higher crude oil futures and a rally in US Treasuries after-hours. Finance Minister Katayama said, “We will respond appropriately to the exchange rate as necessary,” but the impact on the markets was limited. In European time, USD/JPY inched higher.NYtime, following last week’sFOMCoutcome, with higher expectations for a Fed rate hike causing the US10year yield to rise, lifting USD/JPY to161.92yen. After that, reports that “Finance Minister Katayama and U.S. Treasury Secretary Yellen held an emergency online meeting on 6/22 night to discuss a response to a historic yen depreciation and possible FX intervention” raised risk of selling the yen, sending it down to161.06yen. Subsequently, USD/JPY recovered and retraced to161.68yen.

【6/23Market View