Why Has the Yen Weakened After Intervention?

In this video, Gary Thomson explores why the Japanese yen has weakened again after briefly recovering following US-Japan currency intervention, with USD/JPY back above 159.

👉 Key topics covered:

✔️ Why the Yen Recovery Faded —The wide US-Japan rate gap continues to weigh on the yen and

In this video, Gary Thomson explores why the Japanese yen has weakened again after briefly recovering following US-Japan currency intervention, with USD/JPY back above 159.

👉 Key topics covered:

✔️ Why the Yen Recovery Faded —The wide US-Japan rate gap continues to weigh on the yen and support carry trades.

✔️ Geopolitics and Oil —Middle East tensions and higher oil prices are adding pressure on Japan while supporting the dollar.

✔️ Investment Flows —Strong US investment, particularly in AI, continues to attract capital away from Japan.

✔️BoJ Rate Hike Expectations — Markets are increasingly pricing in a potential September rate hike, but could one move be enough to reverse the yen’s trend?

✔️Potential Intervention —With USD/JPY above 159, traders are watching for further action from the BoJ and Japanese authorities.

Interest-rate differentials, capital flows, geopolitical risks and intervention continue to drive the USD/JPY pair.

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