Daiwa Securities: If the rise in USD/JPY continues, Japan is highly likely to intervene.

Daiwa Securities' senior Asia economist Alex Loo and foreign exchange strategist Howard Du stated in a research report that if the upward trend of the US dollar against the Japanese yen continues after this week's central bank meeting, the likelihood of Japanese authorities intervening is high. They pointed out: "From the perspective of the real effective exchange rate, the weakening trend of the yen is becoming increasingly clear, and even though the yen has limited volatility, it is worth considering foreign exchange intervention again." Daiwa Securities believes that the next possible intervention threshold for the US dollar against the Japanese yen is 162. However, they added: "Considering the broad upward trend of the US dollar against global currencies, the Japanese Ministry of Finance may wait until the US dollar against the Japanese yen reaches 165 before taking action."