Yen Stabilizes Near $151 -Japan May Intervene

USDJPY Analysis – The Japanese yen has stabilized near 151 against the dollar, showing a slight improvement after hitting new lows not seen in 34 years earlier in the week. This change comes as Japan’s officials indicate they’re prepared to enter the currency markets if needed.

Yen Stabilizes Near $151

On Wednesday, key figures from Japan’s Ministry of Finance, the Bank of Japan, and the Financial Services Agency gathered to examine the yen’s decline. Finance Minister Shunichi Suzuki said they’re ready to take “decisive steps” if currency fluctuations become too erratic.

Masato Kanda, a leading currency official, also mentioned he’s open to any actions needed to tackle irregular movements in the foreign exchange market. This situation arises as there are thoughts that the Bank of Japan’s monetary policy might remain tolerant despite a recent shift from negative interest rates.

Moreover, BOJ board member Naoki Tamura highlighted that the possibility of inflation rising quickly, forcing a rapid change in monetary policy, is still considered low.