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Japanese yen recovers after joint intervention with US Treasury
The yen was last above 159.00 after a 120-pip range, while Japan spent 8.45 trillion yen defending the currency in one session and another 5.3 trillion in coordination with the US Treasury.
The Japanese yen rebounded close to a full percent through the session, with USD/JPY up 0.93% and trading just above 159.00 after moving in a roughly 120-pip band from around 158.00 to below 159.50, according to FXStreet.
The move partially retraced the yen’s prior slide from a multi-decade high just shy of 164.00 to a spike low a little above 155.00, with the 200-day exponential moving average near 157.00 reportedly holding after repeated tests.
FXStreet attributed the stronger tone to intervention activity, saying Tokyo spent a record 8.45 trillion yen in a single session defending the currency and then followed with about 5.3 trillion more in coordination with the US Treasury, the first joint yen-buying operation since 1998.
The outlet also pointed to Japan’s June current account turning into a deficit of 92.3 billion yen versus expectations for a surplus near 1.5 trillion yen, describing it as the type of shift that can change whether markets view intervention as enough beyond the next few sessions.
Latest closeUSD/JPY 159.27 ▲0.5%