Analyst: Yen's Sudden Surge May Just Be a "Test" and "Warning" by Japanese Authorities

Odaily News According to Justin Low, an analyst at the financial website Investinglive, the yen previously experienced a significant surge. This price movement shares similar characteristics with the Japanese Ministry of Finance's "rate checks," akin to situations observed in 2024 and 2022. The last "rate check" occurred in mid-July 2024, just before Japanese authorities stepped in to buy yen; the one before that was on September 14, 2022, which was one week before actual intervention took place. The purpose of "rate checks" is to give the market some warning time before they actually take intervention measures. Therefore, we already have a general expectation for the yen's trend; the only question is when the intervention will occur. The analyst stated that, in his personal view, this does not appear to be a genuine intervention, as if Japan were to take substantive action, its impact would be broader and more intense. So, this is just a "rate check," and in the coming hours, we should see some official sources provide relevant explanations. (Jin10)