USD/JPY is facing a decline due to intervention pressure.
The Japanese yen, in pair with the US dollar, has finally received support from the Japanese government and central bank. Currently, the USD/JPY exchange rate is at 148.55.
News emerged yesterday confirming interventions with the yen in Japan. However, there has been no official statement released regarding this development. The most recent documents from the Bank of Japan about the monetary market do not indicate any signs of intervention in trading.
Previously, the USD/JPY pair had surged above 150.00, causing concern among economists.
It is plausible that the BoJ conducted trial interventions during the American session to observe market reactions. This could elucidate the pair's retracement. Export-oriented companies swiftly adapted to the local trend, facilitating a minor recovery for the JPY.
Eisuke Sakakibara, the former head of Japan's Ministry of Finance, recently suggested that interventions are probable if USD/JPY approaches the 155.00 mark.