USD/JPY Weakens Despite Joint Intervention Efforts

Institutional investors have been buying US dollars and selling Japanese yen despite joint intervention efforts between the U.S. and Japan to weaken the USD/JPY cross.

The behavior of these investors was observed after two significant events: a June BoJ rate hike, during which they poured into US dollars and sold Japanese yen due to the hawkish interpretation of new Fed Chair Kevin Warsh's first meeting at the helm of the FOMC.

Fast forward to late July when joint intervention between the U.S. and Japan was aimed at weakening the USD/JPY cross, but real money bought US dollars and sold yen, indicating a perception of a USD/JPY buying opportunity.