I posted this back in June when USD/JPY had leapt rapidly higher. Its done so again and the chatter of BOJ yen intervention is all over the place again.

So I'll repeat it.

we have seen intervention, its just been in verbal form.

All those remarks about wanting FX to move stably, yen moves not to be too rapid - you've heard all these many times in the past months as the yen has dropped. they are a first-stage intervention. Mild stuff but effective to begin. They quickly lose their impact though.

So, what about actual intervention, that is, the Bank of Japan entering the FX market to buy yen? (Please note the BOJ will conduct the operation, but it'll be at the direction of Japan's Ministry of Finance - thats how they do things in Japan).

What you want to be listening out for is more specific, and it'll go very much like this, key phrases to be aware of:

we do not want to see one-sided moves in FX
we do not want to see excessive moves in FX
FX movement is not reflecting fundamentals
we will not tolerate speculative movement
The Ministry of Finance will combat excessive moves

Watch out for those. I will be and will let you know also.


Its just after 8.30am in Tokyo and USD/JPY is up[ 50+ points from its early Asia lows already:

usdyen intervention boj 08 September 2022