The yen is off YTD lows after intervention from Japanese monetary authorities, an FT article published over the weekend said that the operation took about $30 billion to defend the currency
Meanwhile, U.S. Treasury yield continue to rise, the Monday session saw the 10-yr rate reach 4.2889%, it ended the day off highs at 4.2424%. The rise in yields is likely to push the USD/JPY rate higher, given the strong relationship over the last year
Expectations are reflected in the dollar-yen contracts. Implied volatility for the 1 mo tenor continues to rise, it has taken the spread to realized vol to the highest since 2011. The fact that hedging demand is higher despite the MoF intervention could point that the yen has not stabilized, yet.
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