TD Securities believes the impetus for the intervention could drop USD/JPY to 153, but this will only be the case temporarily unless the Bank of Japan takes more action or the US Treasury makes a full commitment. “Momentum may briefly push USD/JPY down to 153, but without the Bank of Japan's actions or the full commitment of the US Treasury, we don't think the pair will fall significantly below that level,” wrote strategists such as Howard Du, Gennadiy Goldberg, and Molly Brooks. “The dynamics of bilateral trade between the US and Japan, the risk of a resurgence in the 'selling America' sentiment, the risk of deteriorating America's reputation, political considerations, and risks including systemic shocks are the five major reasons we believe the US Treasury is unwilling to fully support the yen.”

TD Securities believes the impetus for the intervention could drop USD/JPY to 153, but this will only be the case temporarily unless the Bank of Japan takes more action or the US Treasury makes a full commitment. “Momentum may briefly push USD/JPY down to 153, but without the Bank of Japan's actions or the full commitment of the US Treasury, we don't think the pair will fall significantly below that level,” wrote strategists such as Howard Du, Gennadiy Goldberg, and Molly Brooks. “The dynamics of bilateral trade between the US and Japan, the risk of a resurgence in the 'selling America' sentiment, the risk of deteriorating America's reputation, political considerations, and risks including systemic shocks are the five major reasons we believe the US Treasury is unwilling to fully support the yen.”