The US and Japan conducted coordinated yen-buying intervention at the end of July 2026, with the total amount of the intervention expected to exceed ¥10 trillion. By comparison with the 1998 intervention, however, the yen's reversal toward appreciation has been limited.
The US and Japanese monetary authorities conducted coordinated yen-buying intervention at the end of July 2026. Following the intervention, USD/JPY plunged by more than 5% at its steepest point, falling from the ¥163 range to the ¥155 range, marking the first coordinated intervention since June 1998. So far, the yen's reversal toward appreciation has remained limited.
The 1998 coordinated intervention amounted to ¥231.2 billion, and USD/JPY fell by approximately 9%. The total amount this time is said to exceed ¥10 trillion, but the yen's reversal toward appreciation has not progressed to a similar extent.
In 1998, the authorities intervened by selling US dollars and buying yen. This time, the coordinated intervention involved selling euros and buying yen without selling US dollars. This is viewed as one factor that restrained the dollar's decline.
Some believe that deeply entrenched expectations of yen depreciation have limited the effectiveness of the intervention this time. The US and Japanese authorities are seeking to change those expectations by maintaining higher yen levels, but the focus going forward will be on whether it will be possible to confirm that the yen has actually returned to stronger levels.