According to Citigroup strategist Daniel Tobon, if the yen falls past 159 against the US dollar, the likelihood of Japanese authorities taking action increases, which could come in the form of rate checks or direct intervention in the foreign exchange market.
He noted that once the yen begins to break through the 159 level, the risk of authorities responding rises. This is precisely why market participants are reluctant to keep shorting the yen above the 159 to 160 range.
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