MOF back in play?

For now, the Ministry of Finance has been on the sidelines in terms of dollar/yen action. But if the recent rally continues, some say the MOF may step back into play.

“There is some likelihood that the Ministry of Finance will make a dollar selling intervention if dollar/yen goes above 120,” Kanno says.

While analysts generally contend central banks have a difficult time changing a long, strong trend in the foreign exchange market, shorter-term currency traders need to stay on their toes around major price levels, which could potentially draw in central bank intervention.