Sumitomo Mitsui Banking Corporation: The Fed’s decision may push the yen down to 164, and the risk of intervention will rise after the Bank of Japan’s meeting

(1) Hirofumi Suzuki, Chief Forex Strategist at Sumitomo Mitsui Banking Corporation, stated that the US Federal Reserve's rate decision and Chairman Powell's remarks at the press conference may drive the USD/JPY exchange rate up to 164 yen. (2) If this level is reached, given that Japanese financial authorities have recently intensified warnings, the likelihood of foreign exchange intervention will significantly increase. (3) From a timing perspective, if the yen continues to weaken after the Bank of Japan's monetary policy meeting concludes on Friday, this could become an opportunity to trigger exchange rate intervention.