Bloomberg have a summary piece up that, in brief, says that while Japan has ample FX reserves to intervene in the currency market to support the yen, such action from the Bank of Japan is unlikely without a coordinated move with the US Federal Reserve.


  • Past experience shows that US support is critical for turning the tide of a currency attack. Economists say Japan is very reluctant to intervene in the market out of fear the move could backfire, prompting a deluge of bets against the yen.
  • “In reality I don’t think Japan will intervene,” said Harumi Taguchi, principal economist at S&P Global Market Intelligence. “The biggest reason behind the weak yen is the continued rate hikes from the Fed. Unless that changes, I don’t see intervention having an impact.”

There is plenty more detail at the link (Bloomberg is gated).


Earlier posts:

USD/JPY has backed off from 145:

yen chart 13 September 2022