Japan fired a $74 billion warning shot at the forex market—but USD/JPY ignored it.<br>In this episode, we uncover why Japan’s intervention didn’t create a lasting reversal, what’s really driving yen weakness, and the key factor that could determine whether Japan steps back into the market again.<br>Support the show by leaving a rating/review<br>Your Trading Coach - Akil

1348 - Japan’s $74 Billion Forex Intervention Failed... When Could They Strike Again?

The Trading Coach Podcast

[SPEAKER_A] A few months ago, Japan spent nearly $74 billion trying to stop one currency pair from going higher. As the dollar-yen collapsed by more than 500 pips, traders everywhere were convinced that the trend had changed, and many believed that Japan had finally regained control of their currency. They were wrong. But ever since, we've been hearing the same threats that were present before that initial move, which sparks the question: When will Japan strike again? And I think I may have the answer for you. So if you made it far enough into this past weekend's Trading Edge video, you'll remember us talking about the dollar-yen and how a lot of traders were surprised by the bullish breakout that we saw throughout the week. The pair rallied from about, I think it was like 162.5 up towards the 164 even handle, pushing the dollar-yen to 40-year highs. Now, As a technical trader, this wasn't really much of a surprise. We had just completed a wedge pattern that formed after a strong bullish move and a break of structure, and that's typically a continuation pattern. So from a technical perspective, the breakout made a lot of sense. But from a fundamental perspective, however, I can certainly understand why many traders were hesitant to buy the dollar-yen. After all, we've been hearing consistent threats of intervention from Japanese officials, and they've already proven that they're willing to back up those words with actions. And we saw that during the April/May intervention. So what changed? And more importantly, is it actually safe to buy the USD/JPY? Well, before we answer that, let's take a quick step back and explain exactly what happened.

1348 - Japan’s $74 Billion Forex Intervention Failed... When Could They Strike Again?

Read the full transcript

The candid version is on a podcast,
not the earnings call.

1348 - Japan’s $74 Billion Forex Intervention Failed... When Could They Strike Again?

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.