📝 Executive Summary
Japan may have spent as much as $36.6 billion buying yen in the first joint US-Japan action to support the currency since 1998. Bitget Wallet’s Alvin Kan says it can slow a disorderly slide without reversing the broader trend.
Bearish
🤖 90%
Japan and the US intervened to buy yen, spending up to $36.6 billion, in the first joint action since 1998. The rare move directly targets USD/JPY weakness, but Bitget Wallet’s Alvin Kan warns it can only slow a disorderly slide, not reverse the uptrend.
Catalysts
- ▼ $36.6 billion yen-buying intervention
- ▼ carry-trade fears prompting yen demand
Risk Factors
- ▲ Intervention may only provide temporary relief, yen weakness could resume
- ▲ Fed rate outlook keeps dollar supported
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How much did Japan spend on the yen intervention?
Japan may have spent as much as $36.6 billion buying yen in the joint US-Japan operation, the first such action since 1998.
Will the intervention reverse the USD/JPY uptrend?
Alvin Kan of Bitget Wallet said the action can slow a disorderly slide but won’t reverse the broader trend, meaning USD/JPY could resume its rise once the intervention effect fades.
What triggered the need for a joint US-Japan intervention?
The yen’s rapid depreciation and associated carry-trade fears likely prompted the coordinated action to stabilize the currency and prevent a disorderly market.