USD/JPY hits all-time high amid probable BoJ intervention
Key points
- USD/JPY hits 160.00 for the first time since tastyfx began tracking prices
- GBP/JPY simultaneously hit 200.00
- Though unconfirmed, it is likely the Bank of Japan repurchased yen to stabilize exchange rates
- Additional buybacks could be imminent, affecting JPY pairs across the board
USD/JPY spiked to 160.00 before sharp reversal
During the Asian session on Sunday night, USD/JPY soared, appreciating over 200 pips to set an all-time high above 160.00. However, within a few hours, the pair experienced a sudden decline of more than 300 pips—a movement suggesting potential intervention by the Bank of Japan.
GBP/JPY simultaneously hit 200.00
In tandem with USD/JPY's notable ascent, GBP/JPY reached the psychologically significant level of 200.00 around 9pm EST Sunday. A similar downturn around midnight added fuel to the speculation of Bank of Japan intervention amidst this sudden volatility.
Did the Bank of Japan intervene in JPY
Whats next for the Japanese yen
Despite USD/JPY receding below 157.00 and GBP/JPY under 197.00, these figures remain high historically. The possibility of the Bank of Japan engaging in further yen buyback interventions looms, as they had to step in on three separate occasions when the yen suffered in 2022.
How to trade Japanese yen
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on JPY pairs
Trading forex requires an account with a forex broker like tastyfx. Many traders watch major forex pairs like GBP/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Our curated playlists can help you stay up to date on current markets and understanding key terms. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
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