Tokyo’s unprecedented intervention failed to sustain yen strength, retracing half its drop within two weeks despite coordinated U.S. support.
Japan intervened with a record 8.45 trillion Yen in a single session to prop up its currency, followed by 5.3 trillion Yen in coordination with the U.S. Treasury. The move marked the first joint yen-buying operation since 1998 but failed to hold levels beyond a few sessions.
The yen surrendered nearly 1% in recent trading, recovering only half of its drop from a multi-decade peak near 164.00 to a low above 155.00. The 200-day Exponential Moving Average near 157.00 has held, but market activity suggests intervention effects are temporary.
Finance officials signaled readiness to repeat the effort, citing access to the Federal Reserve’s repo facility. However, the yen’s rapid retracement highlights the limits of intervention without broader policy shifts.