Japanese Yen Gives Back Half of July Intervention Gains

The Japanese Yen has lost nearly half of the gains made after a record intervention in July. The USD/JPY pair traded near 159.50, its highest level since the joint operation between Tokyo and Washington.

More than half of the 900-pip intervention drop has been retraced in just over a dozen sessions. The pair's recovery has been slow and built on small price movements rather than any single reversal.

The government is expected to report a widening trade deficit, with imports forecast to rise 26.5% year-over-year while exports remain steady. This would mark a significant increase from the previous month's deficit of 406.9 billion Yen.