USD/JPY ENTERS BOJ INTERVENTION ZONE AFTER RALLYING INTO 151.000S

• USD/JPY rallies up to multi-year highs in the 151.000s – a historical BoJ intervention zone. 
• The move is backed by USD strength as interest rates are seen remaining high in the US. 
• The BoJ raised interest rates but this did not defend the Yen as expected, since Japanese rates remain extremely low. 

The USD/JPY rallies to multi-year highs in the 151.000s on Wednesday on the back of broad-based US Dollar (USD) strength ahead of the Federal Reserve policy meeting and a “one and done” trade weakening the Japanese Yen (JPY). 

The USD/JPY is reaching an intervention zone where the Bank of Japan (BoJ) has historically been known to intervene in FX markets to prop up the Yen, and this could provide an obstacle to more upside for the pair.