Japan Intervenes Again? BoJ Exchange Rate Survey Sends Yen Soaring

The Bank of Japan has reportedly conducted an exchange rate survey, prompting the yen to moderate its intraday decline and raising speculation about potential renewed intervention by Japanese authorities in the foreign exchange market.

In a move that caught traders off guard, the BoJ asked market participants about exchange rate levels in the FX market on Friday, September 18. This action led to an immediate narrowing of the yen's losses, with the USD/JPY rate falling below 156.80 and reducing its intraday gain to around 0.5%.

This is not the first time this year that Japan has intervened in the foreign exchange market. In April and May, the country conducted massive intervention, totaling over $73.8 billion at an exchange rate of 159 per dollar. More recently, on July 31, Japan and the US coordinated a joint yen-buying intervention to curb the yen's recent sharp volatility.

The market remains highly sensitive to potential action from Japanese authorities, with traders waiting for further moves in the yen and official confirmation or subsequent data on whether real intervention will follow the rate check.