Mitsubishi UFJ: The risk of yen intervention seems to be increasing.

Derek Halpenny of Mitsubishi UFJ Financial Group stated in a report that the risks of intervening to support the yen during the relatively quiet Christmas period are increasing. The yen fell to a near four-week low against the US dollar, despite the Bank of Japan raising interest rates on Friday and hinting at further hikes. Halpenny said that the Bank of Japan failed to provide clearer guidance on the neutral level of interest rates that they believe neither stimulates nor slows growth, which has disappointed some market participants. "Another factor that could pressure the yen is the market's perception that there is no strong urgency for further rate hikes." According to data from the London Stock Exchange Group, the dollar rose 1% to a high of 157.12 yen.