USD/JPY on approach to 159! How you left, Ministry of Finance?
From the original
Despite the suspected Japanese FX intervention totalling around $65 billion , USD/JPY climbing steadily back. - Japan's currency intervention mechanism sits at the intersection of fiscal and monetary authority in a way that is unlike most other developed economies. The power to i
Related speeches
4 itemsMUFG Dollar To Yen 2026 Forecast: Intervention Risk Supports Yen Below 160 - Exchange Rates UK
MUFG's 2026 USD/JPY forecast highlights intervention risk as a key factor supporting the yen below 160. The bank argues that Japanese authorities remain vigilant, and any upside breach of 160 could trigger aggressive intervention, capping dollar-yen. This view aligns with broader market expectations of a gradual yen recovery amid narrowing US-Japan yield differentials.
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 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.
A quick drop in USD/JPY before bouncing back up
The desk interprets recent price action in USD/JPY as indicative of diminishing effectiveness of intervention measures by Japanese authorities. Per the full note [source], the pair's drop from 157.70 to 156.75, followed by a rebound to around 157.30, suggests market resilience despite intervention signals. Current positioning reflects a cautious sentiment as traders weigh the potential for further intervention against a backdrop of low liquidity. This aligns with our broader view that USD/JPY may test higher levels in the near term.
More from INVESTINGLIVE
5 items- INVESTINGLIVEMay 28, 2026
Fed's Goolsbee warns AI hype and oil shock are combining to push rates higher
- INVESTINGLIVEMay 28, 2026
Bank of Korea holds at 2.50% but dot plot points firmly to rate hikes ahead
- INVESTINGLIVEMay 28, 2026
PBOC sets USD/ CNY reference rate for today at 6.8240 (vs. estimate at 6.7861)
- INVESTINGLIVEMay 28, 2026
Fed's Jefferson says stopping second-round inflation effects is the Fed's core task
- INVESTINGLIVEMay 28, 2026
ECB's Lane warns Iran war inflation could persist long after conflict ends