ING
June 1, 2026
USD JPY Largest Quarterly Intervention Since 2004
FX StrategyFXRates Govt BondsMacro Economic IndicatorsOther
Japan's MoF confirmed a record JPY11.7tr FX intervention in May 2026, the largest since 2004, in an attempt to support the Yen. However, ING analysts believe USD/JPY will remain supported near 160 due to high US rates and a hawkish Fed outlook.
Key Takeaways
- 1.The Japanese Ministry of Finance confirmed a massive FX intervention of JPY11.735tr (approx. $74bn) between April 28 and May 27, 2026.
- 2.This represents the largest quarterly intervention by Japanese authorities since 2004.
- 3.Despite the intervention, USD/JPY remains bid near 160, driven by the interest rate differential and potential hawkishness from the US Fed.
Table of Contents
- Sizable intervention
- BoJ FX intervention versus USD/JPY
- Policymakers will struggle to turn the tide
- Real interest rates keep USD/JPY supported
- Author
- Disclaimer
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Authors
Chris Turner
Securities
USDJPYUS Treasuries
Themes
Currency Intervention EffectivenessMonetary Policy DivergenceFX Reserve Liquidation
Regions
Asia PacificNorth AmericaJapanUnited States