Forex
USD/JPY Holds Steady at 159 Amid Fading Intervention Effect
The USD/JPY pair has been consolidating between 158.60 and 159.50, after a wild month that saw a coordinated intervention by Japan and the US.
The intervention, which was the first joint action since 2011, aimed to curb the yen's slide and alleviate concerns among policymakers.
The immediate effect of the intervention was substantial, with USD/JPY dropping sharply from 163.73 to a mid-156 low, a decline of roughly 700 pips.
However, since then, the pair has recovered, retracing around half of what it gave up following the August 1 action.
The pace of this recovery matters, as the yen surrendered almost half its intervention-driven gains within seven days of the July 31 announcement.