Will 160 be third USD/JPY line in the sand for Japan?
April 24 (Reuters) - USD/JPY bulls hoping for Japan's second USD/JPY line in the sand at 155 to be washed away, like the first at 152, have been heartened by relatively dovish comments from Takao Ochi.
Senior LDP offical Ochi told Reuters on Tuesday that "if the yen slides further toward 160 or 170 to the dollar, that may be deemed excessive and could prompt policymakers to consider some action".
Ochi also said that "general thinking within the LDP appears that rather than rushing to reverse the yen's declines, we would need to evaluate the impact of the weakness carefully".
USD/JPY, which was last at 160 in 1990 and last at 170 in 1986, notched a new 34-year EBS high two pips shy of 155 on Wednesday.
CFTC data on FX positioning due Friday will show if the net JPY short rose for a sixth consecutive week to a new 17-year high in the week ended Tuesday.
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(Robert Howard is a Reuters market analyst. The views expressed are his own)
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