Yen Nears 34-Year Low Against Dollar; Japan Waits for US Inflation Data Before Potential Intervention

The Japanese yen is hovering near a 34-year low against the US dollar and a critical turning point
Japanese authorities are likely to wait until the upcoming US inflation data before intervening to prop up the yen
They may step in if the yen weakens past 153 per dollar, especially if US inflation comes in hotter than expected
Japan would likely have to spend over $60 billion, more than previous interventions, if it does act to support the yen
Bets against the yen have reached a 17-year high, leaving bears exposed if the yen strengthens modestly