TD Securities: The Possibility of Joint US-Japan Intervention in the Foreign Exchange Market Seems High

According to Golden Ten Data on July 2, the macro research team at TD Securities stated in a research report that the likelihood of a joint US-Japan intervention in the foreign exchange market to support the yen appears to be quite high. The team noted that, during an interview on Wednesday, Japan’s top foreign exchange official, Masato Kanda, repeatedly mentioned the United States, intending to signal to markets that US officials might agree to bilateral intervention, which would constitute a stronger form of forex intervention. The team stated: “In this scenario, the decline of USD/JPY may far exceed the typical five big figures observed during previous unilateral interventions.” TD Securities believes that Masato Kanda’s remarks were deliberately intended as a clear warning to yen speculators, cautioning them not to push USD/JPY below 163.