Yen price action forms bearish triple bottom after intervention
Updated
Updated · Reuters · May 6
Yen price action forms bearish triple bottom after intervention
14 articles · Updated · Reuters · May 6
Japan has spent at least $35bn in recent days, including action on 30 April and two suspected later interventions, to slow the currency's slide against the dollar.
Each sharp yen gain briefly pushed dollar-yen below key technical levels before reversing, creating a pattern analysts say usually points to further yen weakness.
The intervention came as the yen remained under pressure after the Iran war; with the currency nearing 158 per dollar, its outlook may hinge on whether Tokyo keeps intervening.
If oil prices rise or the BOJ delays rate hikes, could Japan's next market intervention fail to stop yen depreciation?
With only two more IMF-approved interventions allowed by November, what will Japan do if the yen weakens again amid global uncertainty?