Institution: The US and Japan suddenly drop sharply, Japanese authorities suspected of intervening again

Golden Finance reports that on May 6, according to the U.S. financial website investinglive, the USD/JPY dollar-yen exchange rate fell by more than 100 points in the short term, dropping more than 1% during the day, and retreated below the 157.00 level. In terms of timing, it seems to be just that—today is a Japanese market holiday, and the previous two intervention attempts also occurred in the time window between the start of the Asian session and the opening of the European session. That said, the timing of the previous interventions was closer to the moment when USD/JPY had just broken through 157.00. This time, USD/JPY climbed all the way to near 158.00 before a suspected intervention took place. Despite multiple attempts by the Japanese Ministry of Finance, the effectiveness of the intervention actions since last week has been weakening. Especially as fundamental factors continue to work against the yen in an overwhelming way. So the question becomes: how much money are Japanese authorities willing to spend on this issue to make the intervention truly work? Considering the broader economic backdrop, this is indeed a very tricky problem. At present, the biggest hope Japanese officials are placing is that the U.S.-Iran conflict will calm down, thereby easing the pressure the Japanese economy is facing. Otherwise, they will continue to go against the enormous tide, trying to persuade traders not to keep selling the yen. (Jin10)