Japan’s intervention, including USD 87 billion in yen purchases, tempers further declines but fundamentals remain key for a sustained recovery.
The Japanese yen steadied near 158 against the dollar after authorities intervened to curb selling, spending an estimated USD 87 billion. USD/JPY retreated from a low of 157.18 but remains close to its 200-day moving average.
Recent joint action by Japan and the U.S. has limited speculative pressure, though U.S. participation is seen as symbolic. Analysts argue that without fundamental shifts, such as faster Bank of Japan policy normalization, the yen’s weakness may persist.
Markets expect further intervention to remain limited, with structural changes needed to reverse the yen’s multi-year decline.