BNY’s EMEA Macro Strategist Geoff Yu notes that the Japanese government remains highly vigilant on foreign exchange despite recent Japanese Yen gains, with USD/JPY moving toward 153 after stronger U.S. payrolls pushed back Federal Reserve rate-cut expectations. Japan is reportedly coordinating closely with U.S. authorities and has even requested exchange rate checks, underscoring persistent intervention risk for Dollar-Yen traders.

Authorities signal ongoing FX vigilance

"Japan’s Vice Finance Minister for International Affairs Atsushi Mimura has said the authorities are “not lowering our guard at all” despite recent yen gains, stressing that the government remains on high alert over foreign exchange movements."

"Mimura declined to comment on speculation about potential rate checks but said Japan will continue to monitor markets with a high sense of urgency and maintain close communication with U.S. authorities and market participants."

"Separately, Jiji press has reported that Japan asked the U.S. to conduct exchange rate checks in January."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)