A coordinated Japan-U.S. yen-buying intervention was conducted, sending USD/JPY sharply lower from around ¥164 to the ¥155 range. A short-term range of approximately ¥155–¥160 was observed after the intervention, and conditions for future intervention and the potential use of the FIMA repo facility were outlined.
In late July 2026, a coordinated Japan-U.S. intervention was conducted, with USD/JPY having risen to around ¥164. Following Japan's yen-buying intervention and coordinated intervention by the U.S. Treasury, USD/JPY fell rapidly to the ¥155 range. The market entered a phase of assessing the intervention's effectiveness and its long-term impact.
The intervention was attributed to an intention to curb the rapid depreciation of the yen, as well as concerns about its impact on financial markets and the trade environment. Japan's and the United States' financial authorities officially shared a policy of addressing excessive volatility and disorderly movements without setting a target level.
A policy of using the FIMA repo facility was outlined, and Japan considered the option of raising dollar funding in the future without directly selling U.S. Treasuries in the market. This approach would enhance the sustainability of intervention, but it was explained that it would not directly prompt a long-term reversal toward yen appreciation.
Although one view identified around ¥155 as the baseline for the current expected range, concern about renewed intervention could increase if the exchange rate exceeds ¥160. Actual intervention, however, is not determined by the level alone. The exchange rate could move outside the range in either direction depending on Bank of Japan policy developments and U.S. economic indicators.