Explainer: What would Japanese intervention to boost the weak yen look like?

<p>I posted on signs of forex intervention to be aware of:</p><ul><li><a href="https://www.forexlive.com/centralbank/jpy-alert-the-clear-signals-to-watch-for-imminent-bank-of-japan-fx-yen-intervention-20230701/" target="_blank" rel="follow" data-article-link="true">JPY alert: The clear signals to watch for imminent Bank of Japan FX yen intervention</a></li></ul><p><a href="https://www.reuters.com/markets/currencies/what-would-japanese-intervention-boost-weak-yen-look-like-2023-06-29/#:~:text=HOW%20WOULD%20IT%20WORK%3F,dollars%20to%20sell%20for%20yen." target="_blank" rel="nofollow">Reuters have a piece up </a>that covers some points that might be of interest:</p><ul><li>The decision is highly political. When public anger over the weak yen and a subsequent rise in the cost of living is high, that puts pressure on the administration to respond. This was the case when Tokyo intervened last year.
</li><li>But while inflation remains above the BOJ's 2% target, public pressure has declined as fuel and global commodity prices have fallen from last year's peaks.
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If the pace of yen declines accelerates and draws the ire of media and public, the chance of intervention would rise again. </li></ul><p>More at that link above. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.