The Federal Reserve is reportedly preparing for a market-stabilizing currency operation, specifically to support the Japanese yen, which has been under sustained pressure. This move is likely aimed at weakening the US dollar, as the only way to support the yen is by selling dollars and buying yen. $PTB

The US and Japan have been conducting rate checks, seen as a precursor to official intervention. The New York Fed's rate check on USD/JPY last week triggered a rally in the yen, with some speculating that coordinated intervention might be imminent. $1000RATS

If the US sells dollars and buys yen:

- The dollar will weaken

- Global liquidity will improve

- Asset prices will begin to reprice

This isn't routine; it's a structural event with global consequences. Historically, coordinated interventions like this have had significant impacts on markets, such as the 1985 Plaza Accord, which intentionally devalued the USD. $PIPPIN

Given the current situation, investors are watching the Fed's upcoming decisions closely. The dollar has already hit a four-year low, and Trump's comments on the dollar's value aren't helping.