Macquarie Expects Japan to Consider FX Intervention Near 165 in USD/JPY

Macquarie Group said Japan’s authorities may be preparing for a new round of foreign-exchange intervention, but could wait until the U.S. dollar rises to around 165 yen. According to Jin10, the bank also said any intervention in the FX market may be delayed until after the release of today’s U.S. nonfarm payrolls data. Macquarie said weaker-than-expected payrolls data could create the best conditions for intervention and maximize its effectiveness. It added that intervening before the data, followed by a strong payrolls report that lifts the dollar broadly, would amount to wasting “ammunition.”