The possibility of Japan accelerating the pace of yen-buying intervention is gaining attention in the foreign exchange market, with views spreading that authorities will defend the ¥160 level. Trump's concern over yen weakness is seen as the backdrop, heightening market vigilance over the possibility of intervention.
Vigilance over yen-buying intervention by Japan's monetary authorities is rising in the foreign exchange market, with expectations spreading that authorities will defend ¥160 to the dollar. Amid speculation over intervention at levels jointly implemented by the Japanese and US governments, a mood is building in the market that further intervention could take place this year.
In the foreign exchange market early on the 25th, many market participants took the view that the risk of yen-buying intervention had increased, and discussion continued over whether the pace of intervention could accelerate. Market participants pointed to the possibility that the timing of intervention could be approaching.
There is information that intervention was undertaken in the April-June and July-September periods in 2024 and 2026, prompting some to anticipate a similar situation this time. Market conditions are being driven by speculation over the likelihood that the government and the Bank of Japan will intervene.
Market participants said the situation was one in which yen-buying intervention was becoming increasingly likely, while refraining from making definitive statements about whether intervention would occur or its scale and watching for further developments.