Yen erases the rescue as carry math wins out

Yen erases the rescue as carry math wins out

The Bank of Japan (BoJ) and Ministry of Finance bought themselves three weeks of breathing room. A combined intervention effort reportedly worth more than $60 billion across late April and early May shoved USD/JPY out of the politically sensitive 160.00 zone, briefly dragging the pair down toward 156.00. The rebound since has been steady, methodical, and almost mathematical. Price now trades around 159.50, leaving roughly 80% of that selloff era…