Skip to content
FXFiboForex Fibonacci Chart
NewsHigh impact

Japan spent ¥15.4 trillion to prop up the yen, its biggest monthly intervention on record

Japan said it spent ¥15.4 trillion (about $97 billion) over three days in the summer to support the yen, its largest monthly intervention on record. Even so, the yen has weakened again and USD/JPY is back around 158.30.

Published: 1 min read11 views
𝕏
Japan spent ¥15.4 trillion to prop up the yen, its biggest monthly intervention on record
Contents
  1. Summary
  2. Intervention details
  3. Market reaction
  4. Tokyo's new tactics
  5. Possible market impact

Summary

Japan said it spent a total of ¥15.4 trillion (about $97 billion) over three days in the summer to support the yen, its largest monthly intervention on record.

Intervention details

Date Yen bought
30 July ¥7.98 trillion
31 July ¥5.55 trillion
Third day ¥1.87 trillion

The 31 July intervention was the first coordinated Japan–US action to support the yen since 1998.

Market reaction

The moves initially strengthened the yen, and USD/JPY fell to 152.89 in early September. But the yen weakened again, and the pair traded around 158.30 on Monday.

Tokyo's new tactics

  • Surprising the market: Japan has used new tactics, such as intervening ahead of Bank of Japan policy decisions.
  • Dollar funding: Japan can use the Federal Reserve's FIMA Repo facility, so it does not necessarily need to sell US Treasuries outright to fund future interventions.
  • Warning speculators: Japanese and US officials say they are ready to intervene again if disorderly moves and yen weakness continue.

Possible market impact

  • USD/JPY: The interest-rate gap between Japan and the US remains the main driver of yen selling, but moves towards 160 and above raise the risk of a sudden intervention and a sharp drop in the pair.
  • US dollar: Coordinated intervention can temporarily weaken the dollar index. EUR/USD daily analysis
  • Yen crosses: GBP/JPY and other yen crosses can swing sharply during interventions; risk management is essential.

Source: Japan's Ministry of Finance; price data: Bloomberg.

This article is news and education, not trading advice. Follow live analyses on our Telegram channel and reach support at @fibonacci_chart with any questions.

Forex and CFD trading carries a high level of risk due to leverage and you may lose more than your initial capital. Content on this site is educational and not investment advice.

Get curated analysis every Friday

5 key events, 2 curated analyses and one tool or lesson — one-click unsubscribe.

Discussion(0)

Comments are reviewed before publishing.

    Related articles

    See all
    NewsHigh impact

    UK GDP grows 0.2% in September, Q3 up 0.7% and industrial output beats expectations

    The UK economy grew 0.2% in September, above the 0% forecast. Q3 growth of 0.7% and annual growth of 1.9% matched expectations, while industrial and manufacturing output rose.

    1 min read
    NewsHigh impact

    BoJ board member Asada: any further rate hikes should be cautious and gradual

    BoJ board member Asada says that with rates near neutral, further hikes would hit the economy harder and must be cautious. He is not entirely opposed to raising rates.

    2 min read
    NewsHigh impact

    Market sees 80–85% odds of Jensen Huang leaving Nvidia: would ousting him be a costly mistake?

    Market-implied odds of Huang's exit hit a record 85%, and Nvidia has lost $2.1 trillion in value since Oct 26. Some analysts argue removing him could be a mistake.

    2 min read