USD/JPY Biased to Downside as Japan FX Reserves Remain Plentiful

Japan’s foreign exchange reserves fell to $1.19 trillion in October from $1.24 trillion in September, according to the Ministry of Finance (MoF). Around a tenth of those reserves are readily available for currency intervention, being held in foreign banks; other reserves are less liquid. The value of those foreign reserves fell to $941 billion from $985 billion. A period of Yen strength followed the last likely intervention on October 21, when USD/JPY traded above the 150 mark. That has kept Yen bears on the sidelines, but the JPY strength may not last if the US Dollar undergoes another bout of strength, especially with the Bank of Japan keeping its ultra-loose policy in place. But for now, Japan still has plenty of ammunition to defend the currency. https://www.dailyfx.com/news/usd-jpy-biased-to-downside-as-japan-fx-reserves-remain-plentiful-20221108.html