Forex
Home›Forex›Major Pairs›Yen intervention confirmation lifts cross pairs but US…
Yen intervention confirmation lifts cross pairs but USD/JPY holds near 155
Traders appear to view last week’s joint yen-buying as aimed at keeping USD/JPY from quickly returning above 160, while yen-funded carry trades are being unwound across higher-yielding currencies.
Action Forex reports that the yen’s recent strength extended beyond USD/JPY into other currency pairs after the United States and Japan confirmed last week’s coordinated yen-buying intervention, the first such operation since 2011.
The confirmation was unusual for its speed, with officials on both sides moving quickly to acknowledge the action. That faster disclosure reinforced the message that policymakers are prepared to act again if needed.
Despite the push lower early on, USD/JPY stalled just above the key 155 support area, where buyers emerged before the pair could test the level decisively. The price action suggests traders are not yet convinced the intervention was intended to force a meaningful break below 155, instead focusing on preventing a rapid return above 160.
Rather than driving a sustained move in USD/JPY, the adjustment appears to be showing up in the crosses, with yen strength effectively squeezing yen-funded carry positions. AUD/JPY led losses, followed by NZD/JPY, while GBP/JPY, CAD/JPY, and CHF/JPY also declined sharply, pointing to a broader reduction in carry trades rather than outright dollar weakness.
Latest closeUSD/JPY 157.40 ▼1.7%