I recently saw that the Bank of Japan has taken action again, and this time the scale is quite large.


Based on central bank account data estimates, they probably used about $34.5 billion to support the yen's appreciation, which is the first direct intervention since July last year.
Converted into yen, that's roughly 5.4 trillion, significantly larger than the average of 3.8 trillion yen per intervention last year.

Katayama May and others had already announced that a "decisive action" was coming soon, and as a result, the yen appreciated by over 3% on Thursday evening.
Market reactions were very quick; everyone could see that the central bank had really entered the market.
Interestingly, the official current account data published by the central bank predicts a decline of 9.48 trillion yen due to fiscal factors, far exceeding the 4.08 trillion yen previously expected by currency brokers, so the yen's appreciation is indeed quite strong.

However, Katayama is still warning traders not to relax, even saying that during Golden Week, it's best not to put down their phones.
It seems they are serious about this.
This initial intervention appears to be effective, but judging by her attitude, there may be more actions to come.
The yen's appreciation is far from over.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin