Japan intervention unlikely to sustainably curb yen weakness, poll shows

A Reuters poll of economists indicates that Japan's currency intervention is unlikely to sustainably curb the yen's weakness, as USD/JPY climbs back to 158.50, the highest level in two weeks and near the point where Tokyo first intervened this year.

The findings come amid rising pressure on Japanese officials as the Middle East conflict drags on, keeping safe-haven demand for the dollar elevated. The Ministry of Finance's intervention efforts have not led anywhere, with the move higher in USD/JPY negating all the ammunition thrown out during last week. While there have been minor hiccups this week, these could be rate checks rather than actual intervention. For forex traders, the persistent yen weakness highlights the limits of unilateral intervention in the face of strong fundamental drivers like interest rate differentials between the US and Japan. Live FX prices and charts on NowPrice show how the market is reacting to these dynamics in real time.

Looking ahead, traders will watch for any further verbal warnings or actual intervention from Tokyo, but the poll suggests that without a shift in the BOJ's monetary policy stance or a change in the US yield advantage, the yen may remain under pressure. Key levels to monitor include the 160 handle, which could trigger another intervention round, and any comments from Japanese officials regarding their tolerance for further depreciation.