Japanese Yen: Intervention Without Resolution, 2022, 2024 and 2026.
Why the Yen keeps Weakening
The repeated interventions by the Bank of Japan on behalf of the Ministry of Finance Japan should not be interpreted as isolated attempts to defend the yen. They are the visible manifestation of a deeper structural constraint that has been building since the first major intervention episode in 2022. At that time, USD/JPY approached the mid-140s and then broke toward 150, forcing authorities to step in for the first time in decades with a scale that exceeded $60 billion across multiple operations. The immediate effect was powerful. The yen strengthened sharply, positions were squeezed, and the market briefly repriced the trajectory of the currency. Yet the move did not hold. Within months, the underlying trend reasserted itself, and the yen resumed its depreciation path.
The same pattern repeated in 2024. This time the threshold had shifted higher, toward the 155–160 range. Once again, authorities intervened with comparable size, once again the yen rallied sharply, and once again the mo…
