Post #1866759
2026-05-02 01:31 UTC
https://www.youtube.com/watch?v=oO6Jtf8bz8w
https://giftarticle.ft.com/giftarticle/actions/redeem/ab156b22-a699-4946-8aaf-f46997faca76
watching FX intervention is as fun as parsing FedSpeak.
In the case of Yen, clearly MoF doesn't like USDJPY going above 160. But note how they did the intervention:
* doesn't confirm if they intervened
* no comment on if they are defending 160 (leaving you guessing)
* tell you golden week is coming (liquid is thin, our intervention will be more effective)
*
Replies (1)
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@rli@macaw.social 2026-05-02 01:41
Is the intervention effective? I think yes. And the bag of tricks is deep. However, this may be fine for short-term only. imo Yen is poised to be weaker in long-term: Japan is going through 'balance sheet' shock. On the import side it's getting hit with high energy price, on the export side it's experiencing fierce competition from China on EV, semi, heavy machinery, etc. Feels the latter one is not being noticed enough.