The Japanese Yen has a second buyer nobody will name
Thursday's record Yen defence is the story everyone has written.
The Japanese Yen faced a record defense on Thursday, with the Dollar sold in three separate episodes. The US Treasury hinted at potential intervention, but no specific buyer has been named. The Dollar traded close to 159.00 late Friday, one and a half yen below the session's start. The London morning pushed the Dollar down to 158.50, only for it to be quickly bought back.
A second dip occurred around 13:15 GMT, coinciding with a Treasury announcement. The session's low of 158.00 was reached later in New York. Traders found it challenging to separate the operation from liquidation. The IMF allows up to three intervention episodes in six months for a free-floating exchange rate. Japan holds around 1.4 trillion Dollars, with most of it in foreign currency assets.
The Treasury Secretary called the Yen undervalued and mentioned currency markets often overshoot. This operation, estimated at 53 billion Dollars, is the largest single-day intervention in Tokyo's history. The next key release will be nonfarm payrolls on Friday, August 7, at 12:30 GMT. The 50-day Exponential Moving Average at 161.50 serves as resistance, while the 200-day EMA near 158.00 offers support.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
