Following the coordinated intervention by Japan and the United States in 1998, USD/JPY initially recovered in a rebound, but reached a new high again about two months later. The LTCM shock was then triggered by Russia’s devaluation of the rouble, and the trend shifted sharply toward a stronger yen following an emergency rate cut by the Federal Reserve.
The coordinated intervention by Japan and the United States was carried out on 17 June 1998, and USD/JPY fell by as much as approximately 9% from the ¥146 range before the intervention to the ¥133 range. It then bottomed out on the third business day after the intervention and moved back toward a stronger US dollar and weaker yen, reaching around the ¥143 level.
USD/JPY remained range-bound for some time after the intervention, but the stronger-dollar, weaker-yen trend resumed. In mid-August, around two months after the coordinated intervention, USD/JPY entered a phase in which it exceeded the pre-intervention high.