The Japanese yen, paired with the US dollar, appears relatively weak but is not falling further. The current USDJPY exchange rate stands at 151.67.
Japan's finance minister, Shunichi Suzuki, faces a challenging task: he must reiterate the same message almost daily. While these may be verbal interventions, they no longer impact the market. Today, Suzuki once again emphasised that the authorities closely monitor currency movements and observe the yen's exchange rate trajectory.
There is speculation in the market that actual interventions in currency movements are unlikely before the yen falls below 155 per US dollar. Japanese authorities last intervened in 2022, when the yen dropped to 152 per USD.
At the same time, it is worth recognising that the likelihood of currency interventions is slight. The yen is on a steady and gradual decline, unlike the sharp drop seen in 2022.
A breakout of the 155-yen level will attract significant attention.