**Japan spent $35 billion defending the yen. Yesterday.** ๐ฏ
USD/JPY hit 160.72. โก
Japan intervened. Hard.
Yen jumped 3% to 155.5. ๐ฃ
But here's the problem โ
Last time Japan did this was July 2024.
Spent $36.8 billion.
Yen weakened back to same levels anyway. ๐ฏ
Because the intervention didn't fix anything.
The interest rate gap between US and Japan
hasn't changed. ๐
US rates: 3.5-3.75%.
Japan rates: 0.75%.
That gap is why the carry trade exists.
That gap is why yen keeps weakening.
That gap is why $35 billion buys weeks not months. ๐
Japan can intervene again.
And again.
And again.
But until the rate gap closes โ
**they're bailing out a leaking boat
without fixing the hole.** ๐ฃ
$35 billion is real money.
Even for Japan.
And their foreign reserves
aren't unlimited. ๐ข
Watch USD/JPY next week.
If it climbs back toward 160 โ
intervention failed again. ๐
#Japan #Yen #USDJPY #CarryTrade #BOJ #Macro #BreakingNews #FX #Markets #Fed
USD/JPY hit 160.72. โก
Japan intervened. Hard.
Yen jumped 3% to 155.5. ๐ฃ
But here's the problem โ
Last time Japan did this was July 2024.
Spent $36.8 billion.
Yen weakened back to same levels anyway. ๐ฏ
Because the intervention didn't fix anything.
The interest rate gap between US and Japan
hasn't changed. ๐
US rates: 3.5-3.75%.
Japan rates: 0.75%.
That gap is why the carry trade exists.
That gap is why yen keeps weakening.
That gap is why $35 billion buys weeks not months. ๐
Japan can intervene again.
And again.
And again.
But until the rate gap closes โ
**they're bailing out a leaking boat
without fixing the hole.** ๐ฃ
$35 billion is real money.
Even for Japan.
And their foreign reserves
aren't unlimited. ๐ข
Watch USD/JPY next week.
If it climbs back toward 160 โ
intervention failed again. ๐
#Japan #Yen #USDJPY #CarryTrade #BOJ #Macro #BreakingNews #FX #Markets #Fed