JPMorgan: Japan and the US Coordinate to Resist Yen Weakness - FJElite

Japan’s Ministry of Finance appears to have conducted yen-buying intervention on both July 30 and 31, with total intervention this year likely already well above the ¥15 trillion used in 2024. The Financial Times also reported coordinated US intervention for the first time since June 1998, suggesting cooperation between US and Japanese authorities to prevent further yen depreciation is stronger than previously expected.

The reported US action appears to have involved buying yen against the euro rather than the dollar, indicating support for Japan’s intervention rather than an attempt to weaken the dollar more broadly. Japanese authorities clearly view USD/JPY above 160 as excessive and are unwilling to tolerate it. Seeking US support may also reflect limits on further unilateral intervention and Japan’s inability to accelerate BoJ rate hikes solely to stop yen weakness.