Japan, US likely to intervene again if yen resumes slide, ex-BOJ official says

Former Bank of Japan official Atsushi Takeuchi said Japan and the United States would likely intervene again in the yen market if the currency resumes its downward trend. The joint action taken by both countries recently was highly effective in creating the perception that the yen's decline would not continue. Takeuchi noted that the United States is effectively unlimited in its ability to provide dollars for intervention, giving Japan no constraints in its efforts.

The yen is currently expected to trade in a range of 155 to 162 per dollar, with a near-term bottom near 160 per dollar being a target. If the yen manages to stay above this level for a week, markets could view it as a significant bottom and push the currency higher. Takeuchi cautioned that the United States risks losing credibility if the yen continues to weaken.

He also pointed out that Japanese bond yields have risen to a 30-year high, likely influencing the United States to support Japan's intervention efforts.