Danske Bank says the yen’s rapid depreciation could soon test levels that might prompt official intervention by Japan’s authorities.
Analysts noted that the yen’s slide following Sanae Takaichi’s leadership win, which sparked expectations of looser fiscal and monetary policy, has revived speculation about possible action from the Bank of Japan and the Ministry of Finance to stabilise the currency.
Analysts recalled that when Japan last intervened in 2022–2023, officials under then Vice Finance Minister Masato Kanda considered a roughly 4% two-week yen drop as a trigger. Based on that precedent, the bank estimated a potential intervention threshold for USD/JPY around 154–155.
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Who is going to first to say 154-155 "line in the sand"? Before getting it kicked in their face?
