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USD/JPY falls sharply on speculation of intervention

The move comes amid a mixed U.S. data backdrop, where second-quarter GDP slowed but consumer spending rebounded and underlying inflation pressures eased.

Reported · Written up by our desk · Major Pairs

Forexlive reported that USD/JPY moved sharply lower Thursday, with traders pointing to speculation about possible currency market intervention.

The broader U.S. economic picture was mixed but constructive. The advance estimate for second-quarter GDP showed growth at an annualized 1.5%, below the 2.1% consensus forecast and down from 2.1% in Q1, even as consumer spending accelerated sharply.

According to the report, inflation continued to cool on the monthly data, while the labor market stayed resilient. Weekly jobless claims and other indicators came in better than expected, reinforcing the view that employers were keeping layoffs near historically low levels.

The outlet also highlighted Dallas Fed Trimmed Mean inflation, which it said fell to +1.4% versus +2.7% in May, suggesting underlying price pressures were easing faster than headline measures indicate. Forexlive added that the Federal Reserve remains focused on returning inflation to its 2% goal, and energy prices could still be a wildcard.

Latest closeUSD/JPY 159.74 ▼2.5%

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