Intervention bought the Japanese Yen a price, not a buyer
The Yen has surrendered close to a full percent through the session, with the pair up 0.93% and changing hands just above 159.00 after a 120-pip range running from the 158.00 handle to short of 159.50.
The Japanese Yen has rallied about 0.93% in a single session, trading just above 159.00 after a 120-pip range between 158.00 and 159.50. This recovery represents roughly half of the currency's fall from near a 20-year high of 164.00 to a low just above 155.00, a recovery that has occurred within two weeks. The 200-day Exponential Moving Average (EMA) at 157.00 has supported the Yen's upward movement every time it has been tested.
The Yen's recovery has been driven by larger-than-ever intervention from Japan, with the finance ministry spending 8.45 trillion Yen in a single session to defend the currency, followed by an additional 5.3 trillion in coordination with the US Treasury. This is the first time the two countries have jointly bought the Yen since 1998.
Japan's June current account deficit was revised to 92.3 billion Yen, marking the first deficit in nearly 18 months and signaling the need for deliberate currency purchases. Despite the policy divergence between the Bank of Japan and other central banks, the Yen has shown resilience, with the USD weakening over the past week. Key support levels include the 158.00 handle and 157.50, while resistance is near 159.50 and the 50-day EMA at 160.50.
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