The column points out that the trade deficit is beginning to expand and that the underlying forces behind yen weakness have not been resolved. Following coordinated intervention, dollar/yen was temporarily pushed down to ¥155, but had recovered to ¥158–159 as of writing and was testing a return to the ¥160 range.
The outlook presented is that the trend toward a widening trade deficit is continuing and that the underlying forces behind yen weakness remain unresolved. Against the backdrop of domestic and overseas supply and demand, as well as structural factors, attention is focused on future trends in the trade balance.
The article states that, following the launch of coordinated intervention, dollar/yen was temporarily pushed back to ¥155. It includes analysis of the impact of the intervention and the market reaction.
As of the time of writing, dollar/yen had recovered to the ¥158–159 range, and market conditions were continuing to test a gradual return to the ¥160 range. The article presents a view on the future direction of exchange rates.