Tokyo, we have a problem.

The rally in the yen is still going, with the dollar now nestling under ¥106 for the first time since October 2014.

Credit Suisse writes that the currency is “rather cheap against most valuation metrics, in the aftermath of the 2013-2015 move” which would make it rather difficult for policymakers to justify intervening.

Today’s fresh surge is less about the Japanese currency than it is about the dollar, of course. The pullback there has now dragged the dollar index, a measure of the buck against a basket of other currencies, down to 92.42, the lowest ebb since January 2015.

(Chart: Bloomberg.)

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