USD/JPY pares nearly half its post-intervention drop as 8.45 trillion Yen sell-off fails to establish a lasting floor.
USD/JPY hovers near 159.00, erasing close to half the 900-pip decline triggered by Japan’s late-July intervention. The Ministry of Finance sold 8.45 trillion Yen in a single session and another 5.3 trillion Yen in coordination with the US Treasury, pushing the pair from near 164.00 to just above 155.00.
The pair has since retraced to 159.00 without fresh catalysts for Yen weakness. The 159.50 level has capped rallies for three weeks, aligning with a descending 50-day EMA near 160.00. Analysts note the intervention created a ceiling rather than a durable floor, though it deterred speculative longs above the defended level.
Funding for the operation reportedly involved US Treasury Euro sales, underscoring the scale of coordination. The 8.45 trillion Yen single-session sale remains Japan’s largest currency intervention on record.