Da Ming: The intervention momentum may briefly push the USD/JPY down to 153.

According to Dai Ming Securities, the impetus for intervention may push the USD/JPY down to 153, but this will only be temporary unless the Bank of Japan takes more action or the U.S. Treasury makes a comprehensive commitment. Momentum may temporarily drive USD/JPY down to 153, but without action from the Bank of Japan or a full commitment from the U.S. Treasury, we do not believe this currency pair will stay significantly below that level, wrote strategists Howard Du, Gennadiy Goldberg, and Molly Brooks. The dynamics of U.S.-Japan bilateral trade, the risk of a resurgence in 'Sell America' sentiment, the risk of deterioration in U.S. credibility, political considerations, and risks including systemic shocks are the five main reasons we believe the U.S. Treasury is reluctant to fully support the yen.