USD/JPY hits all-time high amid probable BoJ intervention
Key points
- USD/JPY hits 160.00 for the first time since IG began tracking prices
- GBP/JPY simultaneously hit 200.00
- Though unconfirmed, it is likely the Bank of Japan repurchased yen to stabilize exchange rates
- Additional buybacks could be imminent, affecting JPY pairs across the board
- USD/JPY hits 160.00 for the first time since IG began tracking prices
- GBP/JPY simultaneously hit 200.00
- Though unconfirmed, it is likely the Bank of Japan repurchased yen to stabilize exchange rates
- Additional buybacks could be imminent, affecting JPY pairs across the board
USD/JPY spiked to 160.00 before sharp reversal
During the Asian session on Sunday night, USD/JPY soared, appreciating over 200 pips to set an all-time high above 160.00. However, within a few hours, the pair experienced a sudden decline of more than 300 pips—a movement suggesting potential intervention by the Bank of Japan.
During the Asian session on Sunday night, USD/JPY soared, appreciating over 200 pips to set an all-time high above 160.00. However, within a few hours, the pair experienced a sudden decline of more than 300 pips—a movement suggesting potential intervention by the Bank of Japan.
USD/JPY price history
GBP/JPY simultaneously hit 200.00
In tandem with USD/JPY's notable ascent, GBP/JPY reached the psychologically significant level of 200.00 around 9pm EST Sunday. A similar downturn around midnight added fuel to the speculation of Bank of Japan intervention amidst this sudden volatility.
In tandem with USD/JPY's notable ascent, GBP/JPY reached the psychologically significant level of 200.00 around 9pm EST Sunday. A similar downturn around midnight added fuel to the speculation of Bank of Japan intervention amidst this sudden volatility.
Did the Bank of Japan intervene in JPY
The remarkable reversal following the yen’s rapid decline likely indicates an intervention by the Bank of Japan to stabilize the yen by purchasing it back in forex markets. At last week's BoJ meeting, the central bank confirmed it would intervene if the yen continued to depreciate at a rapid pace. Official confirmation is pending due to a holiday in Japan today, contributing to heightened market volatility attributable to reduced liquidity.
The remarkable reversal following the yen’s rapid decline likely indicates an intervention by the Bank of Japan to stabilize the yen by purchasing it back in forex markets. At last week's BoJ meeting, the central bank confirmed it would intervene if the yen continued to depreciate at a rapid pace. Official confirmation is pending due to a holiday in Japan today, contributing to heightened market volatility attributable to reduced liquidity.
What's next for the Japanese yen
Despite USD/JPY receding below 157.00 and GBP/JPY under 197.00, these figures remain high historically. The possibility of the Bank of Japan engaging in further yen buyback interventions looms, as they had to step in on three separate occasions when the yen suffered in 2022.
Despite USD/JPY receding below 157.00 and GBP/JPY under 197.00, these figures remain high historically. The possibility of the Bank of Japan engaging in further yen buyback interventions looms, as they had to step in on three separate occasions when the yen suffered in 2022.
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