After the second Japanese FX intervention in three days, most currency traders were left puzzled by the half-assed approach by the BOJ which appears to have spent tens of billions in dollars just to move the yen higher by a few hundred pips, as every intervention is fought tooth and nail by whale accounts
Not surprisingly, a former BoJ official told Reuters on Thursday that Japan will likely keep intervening in the FX market to prevent the yen from a free fall. Atsushi Takeuchi, head of the BOJ's FX division during its market forays in 2010-2012, said Japan may have intervened on Monday. "Authorities will continue to intervene for as long as needed to ensure they accomplish their mission, which is to prevent speculative trading from causing a yen free fall," he said.
