Japan and US Unite Against Sinking Yen

The Japanese Yen has seen significant intervention from both Japan and the US in an effort to stabilize its value against the US Dollar. According to BBH's Elias Haddad, the joint action has already had a noticeable impact on USD/JPY, which plunged by roughly 2 big figures to around 155.23 early in the Tokyo session.

The intervention is aimed at halting the yen's slide and preventing further disorderly movements. US Treasury Scott Bessent confirmed that 'Friday's coordinated foreign-exchange actions countered disorderly yen movements,' while Japanese Finance Minister Satsuki Katayama released a statement confirming Japan's involvement in the coordinated effort.

Haddad notes that joint FX intervention has been successful in the past, with all three coordinated US FX intervention episodes since 1998 yielding positive results. As such, investors are advised to follow the official flow and trade accordingly.