Japan may have conducted a second round of intervention, analysts say the main downward trend of the yen remains unchanged

Golden Finance reports. On May 1, at around 14:45 Beijing time, the US dollar against the Japanese yen once sharply plunged by 130-150 points, falling back to nearly yesterday’s low at the 155.55 level, before rebounding somewhat.

Analyst Justin Low commented on the yen exchange rate fluctuations and said, “This makes sense. Essentially, the second round of action should be more effective, because those trapped speculators will now step aside. But considering that Japan believes it is necessary to carry out a second round of action, this means they are very likely to push the price down below that level at any cost. The main question now is how long Japan’s Ministry of Finance can keep this up. Of course, they have ample reserves they can draw on. However, spending those reserves just to prove a point to the market is somewhat wasteful. As mentioned earlier, every fundamental factor is currently unfavorable for the yen, and policymakers certainly know that. This is a moment of desperation. Especially considering that the US-Iran conflict is still ongoing and the Strait of Hormuz remains closed.”