Japanese Yen: Joint intervention threat curtails selling – MUFG
MUFG’s Lee Hardman notes that the Japanese Yen has weakened modestly in Asia, with USD/JPY near its 200‑day moving average around 158.00 after recent joint intervention by Japan and the US.
The Japanese Yen has shown a slight weakening trend in Asia, with the USD/JPY exchange rate nearing its 200-day moving average of 158.00 after recent joint intervention by Japan and the US. Japan's central bank is believed to have purchased nearly USD 87 billion worth of Yen, while the US's involvement is smaller but still significant.
MUFG analysts anticipate that the US intervention will remain limited and emphasize that fundamental changes, such as quicker BoJ normalization, are necessary for a lasting Yen recovery. Although joint intervention may provide temporary support for the Yen, they believe it can only buy time. A shift in fundamentals, including more US pressure on Japan to expedite BoJ policy normalization, is crucial to reversing the Yen's weakening trend that has persisted for five years.
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