BlockBeats News, January 26th, the recent sharp fluctuations of the Japanese Yen have attracted global market attention. Japanese Prime Minister Kishida Fumio publicly warned of addressing "speculative, abnormal volatility," while the New York Fed made a rare inquiry to market institutions about the Yen exchange rate, further fueling speculation of possible US-Japan coordinated intervention. The Yen quickly rebounded to near 155 against the US Dollar, indicating that the market has begun to price in policy risks in advance.
From a macro perspective, the Yen depreciation is no longer just a currency issue but also involves Japanese domestic politics, finance, and global capital flows. The surge in long-term Japanese government bond yields and the approaching snap election have significantly reduced the government's tolerance for an uncontrollable exchange rate. If the USD/JPY approaches the 160 level again, the political and financial legitimacy of intervention will simultaneously increase, with a higher possibility of tacit approval or even coordination from the US side.
Analysts at Bitunix stated that the real risk to the market is not in "verbal intervention" but in whether there is substantial fund inflow. If Tokyo acts unilaterally, the effect may be short-lived; however, if it evolves into US-Japan coordination, it will have a significant impact on global forex, interest rates, and risk assets, prompting a reevaluation of the sustainability of the US Dollar cycle. 160 is not just a technical threshold but also a policy bottom line. Whether to intervene and how to intervene will determine whether the Yen merely rebounds or undergoes a phased reversal, becoming a crucial observation point for a global market risk appetite shift.
