Yen Intervention Expected Again as Tokyo and Washington Stand Firm

A former BOJ official claims Japan and the US will intervene again if the yen resumes its downtrend. Atsushi Takeuchi, president at Ricoh Institute of Sustainability and Business, stated that the latest joint action was highly effective in creating market perceptions that one-way weakening of the yen will not continue.

The yen held gains above recent 40-year lows after the two countries launched a rare joint yen-buying intervention. Takeuchi said there are effectively no constraints preventing Japanese authorities from intervening due to US backing, which theoretically can obtain unlimited amounts of dollars.

He added that the fact the United States stood behind Japan and took action has a huge symbolical meaning. The yen is likely to move in a range of 155 to 162 per dollar for the time being, he said.