“Japan’s FX intervention has never worked to stop the medium-term fall in the Yen. Not once. It didn’t work in 2024 when Japan did huge intervention. It didn’t work earlier this year when the NY Fed did its infamous rate check. It won’t now either…”

As predicted, the delay of BOJ hiking in fear of slowing economy means leaving every defence to MOF.

And this point after 25 verbal intervention with zero effects, the MOF must conduct fx intervention to preserve credibility, buying time before next BOJ decision or hope for fed cut; in a way if Warsh does deliver the cut it could work, but that means MOF is left defending yen along for now.

Classic Japanese, afraid of breaking things only to bread bigger crisis.