Trump says yen intervention stems from US-Japan friendship

Summary

Donald Trump attributed recent U.S. intervention in the Yen to the ‘good relationship’ between the U.S. and Japan Zhitong. This follows a leaked note from Treasury Secretary Bessent indicating plans to buy $5-10 billion in Yen , coinciding with a massive $52.8 billion single-day intervention by Japan that pushed the Yen from 162.80 to 157.80 .

Impact Analysis

So Trump is basically framing this massive FX pivot as a ‘friendship’ gesture, but don’t buy the sentimentality. The real story is the leaked note from Secretary Bessent . Buying $5-10 billion of Yen isn’t just a favor; it’s the first time in nearly 30 years the U.S. has directly intervened like this without a global catastrophe . They’re clearly terrified that a free-falling Yen would force Japan—the largest holder of U.S. debt—to liquidate Treasuries to defend their currency .

Japan’s $52.8 billion bazooka, now backed by U.S. coordination, has effectively broken the back of the Yen bears . The move from 162 to 157 in under an hour was a violent liquidation of the carry trade . Bottom line: the ‘strong dollar’ era is being sacrificed for Treasury market stability. The carry trade is toxic now. I’d stay long Yen on dips because the political ceiling for USDJPY has been set by the White House, not just the BOJ.