Joint currency intervention by Japan and the US Treasury drives USD/JPY below 158, marking rare coordinated action to support the yen.
Japan and the US Treasury conducted joint foreign exchange intervention on Friday, selling euros to buy yen and pushing USD/JPY below 158. The move follows suspected unilateral action by Japan’s Ministry of Finance earlier in the week, which had already weakened the pair from around 164.
Historically, joint yen interventions have signaled potential turning points in USD/JPY, though broader trend shifts often require fundamental changes. In June 1998, similar intervention drove USD/JPY down from 146 to 136, but a sustained reversal took months amid the Asian Financial Crisis.
Japan’s Finance Minister confirmed the joint action and warned of further intervention if necessary, emphasizing close coordination with the US. Markets remain cautious, as past interventions have had mixed success in reversing long-term trends without supporting economic shifts.