US-Japan Joint Intervention Looms: Potential $10 Billion Yen Buy

Currency traders are bracing for a potential joint US-Japan intervention in currency markets, expected to be confirmed on August 3. The last time the two countries intervened together was in 2011, when Bitcoin traded under $10. Now, with the yen at its weakest level against the dollar since 1986, both nations appear ready to do it again.

The Bank of Japan has already started purchasing yen during New York trading hours, suggesting the operation is underway before any formal announcement. US Treasury Secretary Scott Bessent has reportedly outlined a potential intervention size of $5 billion to $10 billion in yen purchases.

Japan's Finance Minister Satsuki Katayama has been preparing for joint action with US authorities to stabilize the currency. The US Treasury issued warnings to primary banks on August 1, instructing them to prepare for yen-buying trades.