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USD/JPY holds near 159 after yen’s post-intervention rebound

The pair has recovered close to 4 yen of the intervention move, while July trade showed imports up 27.8% year over year and the merchandise deficit widening to about 635 billion yen.

Reported · Written up by our desk · Major Pairs

USD/JPY was trading near 159.00 late in the session, up 0.5% on the day and slightly above a rising 200-day exponential moving average around 158.00, as the yen continues to unwind part of a late-month coordinated intervention, according to FXStreet.

The coordinated purchases at the turn of the month involved the Ministry of Finance buying yen alongside the American Treasury, with a single-day spending estimate near $37 billion, and the yen’s recent rebound has already returned about 4 yen of the move, FXStreet said, leaving the pair around 5 yen below the pre-intervention high.

FXStreet attributed the lack of a clean, lasting “announcement effect” to the intervention’s design, noting that coordinated buys can move spot levels without changing rate differentials, so the impact decays on a schedule while underlying flows remain.

On upcoming fundamentals, FXStreet pointed to Japan’s July inflation data due at 23:30 GMT, alongside trade figures that showed imports rising 27.8% year over year versus a 26.5% forecast, exports up 23.2% versus 19.9%, and the merchandise trade balance widening to a deficit near 635 billion yen from roughly 410 billion the prior month. It also highlighted a wedge between producer prices and consumer inflation, with producer prices up 7.2% year over year while consumer inflation was near 1.7%.

Latest closeUSD/JPY 159.31 ▼0.1%

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