USD/JPY: Intervention risk and oil focus shape outlook – BNY

BNY’s Bob Savage highlights that suspected FX intervention has driven a sharp Japanese Yen rebound, with the Ministry of Finance signaling readiness to act in both currency and crude oil futures. The focus is now on key USD/JPY levels around 155–158 as authorities seek to counter Yen weakness.

Authorities eye key Yen levels and oil

"The new story is about the FX intervention to support JPY yesterday and potentially today; however, that did not move markets much other than to reset the currency against its peers."

"JPY intervention: The BoJ likely spent $34.5bn intervening to move JPY from 160 to 156 yesterday, in the first intervention since July 2024. “I won’t comment on what we’ll do ahead. But I will tell you that Japan’s Golden Week holidays ​have just started,” Atsushi Mimura told reporters when asked whether Tokyo could intervene in the currency market."

"The focus for action is now on the 155 and 158 marks after yesterday’s surprise action. JPY’s relationship to CNY and KRW and the easing in USD buying in APAC will be watched into next week."

"Japanese Deputy Finance Minister Atsushi Mimura has said the ministry is “ready to act regarding crude oil futures transactions.” This latest warning of financial market intervention came as the Japanese yen strengthened further in late Tokyo trading on Friday after an earlier pause, extending gains triggered by suspected government intervention."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)