Japan Intervenes in Forex Market, Sends USD/JPY Plummeting
The Japanese authorities appear to have intervened in the foreign exchange market again, taking advantage of a weaker dollar environment.
This move seems well-timed, but a lasting turnaround in USD/JPY will require the Federal Reserve not hiking interest rates in September and a more hawkish Bank of Japan policy.
The USD/JPY pair has fallen 3.5% on reportedly heavy volumes, similar to late April.