Tokyo’s repeated currency interventions this week have not prevented USD/JPY from rebounding toward 157 after brief dips.
Japan’s Ministry of Finance intervened twice this week to weaken USD/JPY after the pair breached 160.00 last week, but the impact proved short-lived. The first intervention on Monday, executed during low liquidity hours, saw traders buy back the pair near 155.50-70 levels, prompting a second, stronger attempt on Wednesday.
Despite the efforts, USD/JPY failed to break below 155.00, a key level that could have triggered additional stops. Even as the dollar softened, the pair climbed back toward 157.00, reflecting persistent downward pressure on the yen amid ongoing geopolitical tensions and a strong dollar.
Markets were closed for part of the week in Japan, limiting the effectiveness of the interventions. Analysts note that fundamentals continue to favor a weaker yen, undermining Tokyo’s efforts to stabilize the currency.