July 22 (Reuters) - Japan's Ministry of Finance has been conspicuously absent regarding the ordering of Bank of Japan FX intervention despite USD/JPY rallying to as high as the 163 handle Tuesday. Barring action Wednesday, a new equilibrium is likely on 163, following those at lower handles beginning from 157 after interventions in late April and early May . Although there has been recent news of Finance Minister Satsuki Katayama and MOF taking a new tack on FX policy and towards the BOJ, there is little evidence this is actually the case. Tokyo pundits suggest the Takaichi administration's policies remain tied to 'Abenomics', which had as its two pillars a weak yen and loose monetary policy. Despite the new Takaichi economic blueprint giving assurances of BOJ independence , it appears that pressure on the central bank to hold off more rate hikes as long as possible hasn't changed. Barring actual FX action to take USD/JPY lower and/or BOJ action on rates, the USD/JPY uptrend in place from the April 22, 2025 low of 139.89 will likely continue, albeit with intermittent retracements. Tokyo players and especially Japanese importers fret USD/JPY will soon test 165, where massive importer option barriers have been placed. Taking out of these barriers will knock out lower level buy-side contracts, forcing this bloc to buy even more U.S. dollars at spot prices .

Related comments , , , , , , also ..

USD/JPY:

(Haruya Ida is a Reuters market analyst. The views expressed are his own. Editing by Ewen Chew)