Analyst: Intervention in the yen looks very likely.

Analysts at Evercore ISI said in a report that intervention measures aimed at boosting the yen appear highly likely. They said that if the anticipated intervention measures fail to materialize, it could lead to a sharp and disorderly reversal of the yen, as well as unwelcome strength in the US dollar. These analysts stated that currency interventions could have a more lasting impact on the yen, as market interest rates have diverged from the fundamentals reflected in interest rate differentials. However, this impact will need to be supported by a fundamental policy shift, including efforts to restore confidence in fiscal policy. Data from the London Stock Exchange Group shows that the US dollar fell 1.2% against the yen to 153.85 yen, after hitting a two-and-a-half-month low of 153.30 yen earlier.