key takeaways
- An uneventful Bank of Japan (BOJ) meeting was overshadowed by signs of impending intervention by both Japanese and US authorities.
- The Takaichi government, heading into a general election and facing market pressure over its fiscal policy plans, will be looking for some breathing room, particularly with the BOJ showing no sign of raising interest rates faster.
- While intervention could buy Prime Minister Takaichi Sanae some time, the underlying pressure against the yen is unlikely to abate.