Moody's: Strong Signals of Yen Surge, But No Signs of Intervention Yet

Jinse Finance reported that Moody's Analytics economist Stefan Angrick pointed out that the sharp rise of the yen last Friday sparked speculation of official intervention, but so far, the early typical indicators of such actions have not appeared. Although the Japanese Ministry of Finance will delay the release of official intervention data, the Bank of Japan's accounts and estimates from currency brokers usually provide reliable early clues. Angrick stated that these indicators accurately warned of intervention actions in July 2024, but there are no such signs this time. He noted that the government does not always need to actually intervene to influence the market—a credible threat of coordinated action may be enough, especially if Japan and the US act together. USD/JPY is currently trading near 152.54, still some distance from the 160 level considered likely to trigger intervention. (Golden Ten Data)