Why Has the Yen Weakened After Intervention?

FXOpen

In this video, Gary Thomson explores why the Japanese yen has weakened again after briefly recovering following US-Japan currency intervention, with USD/JPY back above 159.

👉 Key topics covered:

✔️ Why the Yen Recovery Faded — The wide US-Japan rate gap continues to weigh on the yen and support carry trades.

✔️ Geopolitics and Oil — Middle East tensions and higher oil prices are adding pressure on Japan while supporting the dollar.

✔️ Investment Flows — Strong US investment, particularly in AI, continues to attract capital away from Japan.

✔️BoJ Rate Hike Expectations — Markets are increasingly pricing in a potential September rate hike, but could one move be enough to reverse the yen’s trend?

✔️Potential Intervention — With USD/JPY above 159, traders are watching for further action from the BoJ and Japanese authorities.

Interest-rate differentials, capital flows, geopolitical risks and intervention continue to drive the USD/JPY pair.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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