Yen intervention risk remains
The yen has pulled back from a 40-year low, but underlying pressures remain.
The combination of a weak currency, rising import costs, and high JGB yields keeps intervention risk on the table.
Japan’s finance ministry is in close contact with Washington on FX issues and is ready to respond at any time, with bankruptcies linked to the weak yen totaling 45 in the first half of the year, up 32.3% from a year earlier.