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Japanese yen intervention slows USD/JPY slide but trend persists

ING says reported intervention helped pull USD/JPY down about 3%, then the pair rebounded nearly 2%, even as it expects further intervention to mainly slow the move.

Reported · Written up by our desk · Major Pairs

ING’s Chris Turner describes USD/JPY as having swung sharply after reports of Japanese FX intervention, with the pair dropping around 3% following the news and then rebounding by nearly 2% overnight.

Turner said the coordinated involvement of the Fed and Japan’s authorities was more important in January, implying that the recent moves were driven by intervention rather than a broader shift in US policy.

While Turner expects additional Japanese intervention, he argues it is unlikely to reverse the underlying USD/JPY bull trend unless there is a clearer change in the Fed outlook.

The analysis is based on market commentary cited by FXStreet, which also referenced the Nikkei’s reporting that Japanese authorities intervened and that the Fed checked rates, similar to January’s approach.

Latest closeNikkei 225 61,867.43 ▲0.7%|USD/JPY 157.40 ▼1.7%

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