On April 29, Fiona Lim, senior forex strategist at Maybank, said that the market is testing Japan's tolerance for the rapid fall decline of the yen, and the momentum for the yen to effectively fall break through the 160 mark against the dollar has been clearly there. The pace of depreciation is accelerating. If it doesn't intervene, then the danger next is like trying to catch a knife that has fallen, especially as the Fed may signal this week that it will have to wait longer before cutting rates. If the yen continues to fall at its current pace, then intervention becomes more likely, especially at a time when signs of yen speculation are clear. So far, the lack of intervention may be due to timing issues. If the Fed hints at a return to the likelihood of a rate hike (which is not our base case), it could push USD/JPY higher again through a rise in US Treasury yields and effectively offset any action Japan might take today.