Tokyo and Washington spent a combined 14 trillion Yen to reverse Yen depreciation, halting a four-decade low near 164.00.
The Japanese Yen stabilized at 157.50 per USD, flat on the session, after authorities spent a record 8.45 trillion Yen in a single day, followed by 5.3 trillion Yen the next. The intervention, joined by the U.S. Treasury, reversed nearly 11 weeks of depreciation, pushing the pair back to mid-May levels.
A week ago, the Yen hit a four-decade low near 164.00. The 200-day Exponential Moving Average now acts as support, with the pair trading in a tight 60-pip range for three sessions. The U.S. Treasury’s involvement, funded by Euro sales, signaled a focus on stabilizing both the currency and Treasury markets.
Markets remain cautious, testing whether authorities will intervene again. The intervention set a floor but did not address the underlying interest rate differential driving Yen weakness.