The yen just erased all the gains from U.S. Treasury intervention. Now we're back to testing the Bank of Japan's resolve.
This is how currency markets work when fundamentals diverge this hard—rate differentials matter more than verbal warnings. The $JPY keeps sliding because the BOJ is still dovish while the Fed holds rates elevated.
If the BOJ doesn't step in soon with actual action (not just jawboning), we could see another intervention round. Watch 155-160 levels closely. History shows these interventions rarely stick unless policy actually changes.
This is how currency markets work when fundamentals diverge this hard—rate differentials matter more than verbal warnings. The $JPY keeps sliding because the BOJ is still dovish while the Fed holds rates elevated.
If the BOJ doesn't step in soon with actual action (not just jawboning), we could see another intervention round. Watch 155-160 levels closely. History shows these interventions rarely stick unless policy actually changes.