22:48 - 4.08.2026

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August 4, Fineko/abc.az. Tokyo and Washington have joined forces in a historic coordinated currency intervention to prop up the Japanese yen, marking their first joint yen-buying operation since 1998.

The joint operation triggered a 5% drop in the USD/JPY pair from around 164, drawing market attention toward the critical 155 technical threshold. Strategists view a sustained break below 155 as a crucial test that could spark a severe short squeeze and push the pair toward 152. Failure to defend this line could reinforce market perceptions that official policy tools are reaching their limits.

Analysts highlight that Washington's involvement carries clear economic conditions beyond alliance support. Key objectives include securing Japan’s $550 billion investment pledge in US projects, obtaining trade concessions, and encouraging Japan to raise interest rates to reduce spillover risks into US Treasuries.