#USDJPY: Intervention Failed to Change the TrendUS Dollar vs. Japanese YenFX:USDJPYStriforJapanese authorities stepped into the foreign exchange market once again after USD/JPY climbed above 163, but the very next day the Bank of Japan left its policy rate unchanged at 1%, offering only more hawkish guidance on the possibility of future rate hikes. Despite the intervention, the broader fundamental picture has changed very little. The interest rate differential between the United States (3.75%) and Japan (1%) continues to support carry trades and demand for the U.S. dollar. As long as this yield gap remains in place, any strengthening of the yen is likely to prove temporary, representing little more than a correction within the broader long-term uptrend.