Japan spent ¥11.7 trillion on foreign exchange interventions in the past month

USD/JPY: Largest quarterly intervention since 2004

Japan intervened repeatedly in forex markets during May holidays, source says

The desk interprets Japan's recent aggressive intervention in the forex markets as a clear signal of the government's commitment to defending the yen amidst significant depreciation pressures. Per the full note [source], Japan reportedly spent around $67 billion in total during interventions on April 30 and throughout the early May holidays, with estimates suggesting $32 billion was deployed between May 1 and May 6 alone. This level of intervention underscores the seriousness with which Tokyo is addressing the yen's decline, particularly in light of rising energy costs driven by geopolitical tensions in the Middle East. As the market digests these developments, traders should remain vigilant for further actions from the Bank of Japan (BOJ) should the yen continue to weaken.

USD/JPY on approach to 159! How you left, Ministry of Finance?

Japanese yen starting to slip away again, will Tokyo officials step in?

The desk views the recent depreciation of the Japanese yen as a significant concern, particularly given the Bank of Japan's (BOJ) limited success in its intervention efforts. Per the full note from Justin Low at investinglive.com, Japan has reportedly spent over $60 billion on market interventions since May, yet the yen continues to weaken, with USD/JPY trading above 157.00. This trend highlights the bearish fundamentals surrounding the yen, exacerbated by geopolitical tensions and rising costs, which complicate the BOJ's monetary policy outlook. As the market tests Tokyo's resolve, the potential for further intervention looms, but the effectiveness of such measures remains questionable given the current market dynamics.