Finance Ministry shifts to unannounced interventions to deter speculative bets against the JPY without setting clear thresholds.
Japanese authorities are abandoning public warnings of currency intervention, opting instead for a more aggressive, unpredictable approach to curb short-selling of the yen. The Ministry of Finance aims to raise the cost of betting against the JPY by avoiding signals of specific trigger levels, relying on silence to keep traders off balance.
Previously, officials hinted at intervention thresholds, but the new strategy focuses on preventing excessive declines through surprise moves. The shift follows years of ultra-loose monetary policy by the Bank of Japan, which has weighed on the yen’s value. Speculative short positions are now at risk of sudden squeezes.
USD/JPY edged 0.10% lower to 162.42 following the report, reflecting cautious market sentiment amid heightened uncertainty over intervention timing.