Japan spends $35bn defending yen, market fights back
Japanese authorities burned through over $35 billion in forex intervention starting April 30, triggering a 500-pip yen rally that reversed within days. The USD/JPY pair has since formed a triple bottom pattern, with traders betting structural weakness will outlast official buying power. IMF rules limit Japan to three interventions in six months, constraining Tokyo's options as policy divergence with the Fed continues driving yen selling. Each intervention grows more expensive and less effective, suggesting authorities are fighting a battle they cannot win without BOJ rate hikes.
Sources
- Japan's costly yen intervention dilemma — Devdiscourse
- Yen weakness intervention risk analysis — FX Trust Score
How Briefed reports and verifies storiesReport a correction
The market, before the open.
Briefed Daily connects the morning’s business and economic news to what matters in markets.