USD/JPY: Largest quarterly intervention since 2004

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

USD/JPY quick dump

The desk is interpreting the recent $35 billion intervention by Japanese authorities as a significant signal in the USD/JPY dynamics, suggesting that further interventions may be on the horizon if speculative pressures on the yen continue. Per the full note [source], Japanese officials have emphasized their close communication with U.S. authorities regarding currency matters, indicating a coordinated approach to stabilize the yen. This intervention aligns with our view that the yen's recent depreciation is unsustainable, particularly given the speculative nature of these moves. Market participants should remain vigilant as this situation develops, especially with the potential for additional interventions looming.

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

Japan goes hard with latest intervention push, USD/JPY drops to ten-week low

The desk observes a significant shift in USD/JPY dynamics following Japan's aggressive intervention efforts, which have successfully pushed the pair to a ten-week low. Per the full note from Justin Low at investinglive.com, the Ministry of Finance's latest yen-buying measures have come in response to persistent selling pressure, particularly after the pair approached the 158.00 mark. This intervention may temporarily alter market sentiment, but the underlying bearish fundamentals for the yen remain intact, especially amid geopolitical tensions in the Middle East. The consensus target for USD/JPY remains at 1.075, with a range between 1.04 and 1.12, indicating a cautious outlook ahead.