The move follows fresh warnings from top currency diplomat Mimura, who urged markets to heed a "very clear" warning and dismissed concerns that funding constraints would limit Tokyo's ability to conduct yen-buying interventions. Japan spent a record $96 billion on market operations in July and August and held its first joint intervention with the US in 15 years in July. Leveraged traders cut bullish yen positions by nearly 80% to $355 million in the week ending September 22, though the currency has gained approximately 1.5% this month.
Wednesday, October 21, 2026
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Yen Breaks Below 156.5 Per Dollar Following Record $96B Intervention
Global Markets21 days ago
Month-end rebalancing and shifts in US dollar positions by traders drove the Japanese currency's gains against the greenback on September 30. The yen broke below 156.5 per dollar as markets reacted to a slump in domestic factory output, which diminished expectations for a forthcoming interest rate hike by the Bank of Japan. Additional pressure on the dollar came from investors reducing holdings ahead of US ADP employment and PCE inflation data.
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