--- title: "\"Hui Hai Wei Yan - Mao Wei Lian\" The US and Japan jointly intervene in the yen, gold prices maintain range fluctuations, waiting for US non-farm payrolls" type: "News" locale: "en" url: "https://longbridge.com/en/news/294647737.md" description: "The US and Japan jointly intervened in the yen, with the Japanese Ministry of Finance injecting 8.45 trillion yen into the market, while the US coordinated to apply pressure. Analysts indicate that this move is not aimed at reversing the yen's weakness, but rather a political and economic compromise: it prevents excessive depreciation of the yen from impacting Japan's political situation, while also avoiding a rapid rise that could trigger unwinding of interest rate differential trades and severely impact US stocks, in order to maintain financial stability ahead of Trump's midterm elections" datetime: "2026-08-03T06:02:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294647737.md) - [en](https://longbridge.com/en/news/294647737.md) - [zh-HK](https://longbridge.com/zh-HK/news/294647737.md) --- # "Hui Hai Wei Yan - Mao Wei Lian" The US and Japan jointly intervene in the yen, gold prices maintain range fluctuations, waiting for US non-farm payrolls "Huì Hǎi Wēi Yán" Last week, the US and Japan jointly intervened in the yen. What is the purpose? Trump calls for a ceasefire again; although there is a glimmer of peace, gold prices remain stagnant. This week focuses on the US July non-farm payroll data. Last Thursday and Friday (July 30 to 31), the US dollar against the yen plummeted from 163.75 to 157.58 at closing, a drop of over 3% in two days, with the market speculating that this was the result of the US-Japan joint intervention. The Japanese Ministry of Finance later admitted to using 8.45 trillion yen (approximately 52.8 billion USD) in real money to enter the market, while the US coordinated with "export techniques," with Treasury Secretary Janet Yellen stating that "the yen is severely undervalued and unhealthy." At the same time, the US Federal Reserve conducted "rate checks" with at least two major banks regarding the yen, seemingly warning speculators shorting the yen. However, the rationale behind this joint action is not merely to reverse the long-term weakness of the yen but rather a compromise of political and economic interests between the two countries. The author believes that the US-Japan joint intervention will not lead to a strengthening of the yen's exchange rate because a rapid rise in the yen would inevitably trigger a massive unwinding of carry trades, severely impacting US stocks, which is precisely the variable that Trump fears most before the midterm elections. For many years, the yen's low interest rates and low exchange rates have made it a "cash machine" for the US financial market, with numerous hedge funds borrowing cheap yen to invest in high-yield assets like US stocks. Currently, the scale of leveraged funds in US stocks is over four times higher than during the 2008 financial crisis. If the yen rebounds sharply, the unwinding pressure will cascade like dominoes, rapidly shrinking the capital chain, and the decline in US stocks could be even more severe than back then. Meanwhile, Trump's approval ratings continue to languish, with the latest polls showing satisfaction with his governance at an all-time low. If a stock market crash occurs before the midterm elections in November, the risk of the Republican Party losing a significant number of seats is extremely high, and their negotiating leverage would be completely lost. Therefore, the US's coordination with Japan for intervention is not aimed at boosting the yen but rather to "stop at the right time" to protect both parties. This is because the yen has indeed depreciated to a 40-year low recently, exacerbating the impact on Japan's domestic economy, with Prime Minister Fumio Kishida's approval rating dropping to only 41%, shaking the ruling position of the Liberal Democratic Party. Japan may be forced to undertake larger-scale interventions or even raise interest rates. If the yen is allowed to depreciate uncontrollably, panic unwinding in the market could also drag down US stocks; however, if the intervention is too aggressive and causes the yen to strengthen, it would also trigger immediate unwinding. Last week's "rate checks" by the US and Secretary Yellen's remarks were merely signals to the market that "the yen should not weaken further," allowing the Bank of Japan to gain breathing space while suppressing excessive bets by speculators to avoid sudden surges or drops in the yen. The US dollar against the yen closed at 157.54 last Friday, and the intervention successfully temporarily alleviated unwinding panic, reducing risk aversion slightly. Gold prices also fell slightly from a high of 4,116 USD to close at 4,046 USD, still firmly holding above the 4,000 USD mark. This US-Japan joint effort is less about reversing the yen's weakness and more about protecting the market, safeguarding the yen from collapse and US stocks from unwinding shocks, ultimately protecting Trump's last line of defense before the midterm elections. The long-term weak pattern of the yen remains unchanged, as neither side can afford the cost of allowing the yen to truly strengthen - The latest WGC report shows that gold demand remains strong \* Last Thursday (July 31), the World Gold Council (WGC) released its latest report, indicating that global gold demand remained strong in the second quarter of this year, with total demand reaching 1,269 tons, unchanged from last year; total demand for the first half of the year amounted to 2,522 tons, valued at $380 billion, setting a historical high. Central bank purchases of gold have become the focus, with net purchases of 289 tons in the second quarter, a year-on-year increase of 62%; the People's Bank of China ranked first with 33 tons and has increased its holdings for 20 consecutive months, setting a new record. The report shows that gold demand remains strong, reflecting that gold prices are still in a long-term bull market. - This week's gold price trend \* Although Trump claimed last night (August 2) that he would stop attacking Iran at the request of Saudi Arabia and Middle Eastern allies, and he also agreed to a ceasefire, the market has come to see the fluctuating situation between the U.S. and Iran as a norm, so gold prices did not react significantly after the market opened today. Instead, the market is more focused on the U.S. non-farm payroll data for July, which will be released this Friday (August 7), as the results will provide insights into U.S. dollar interest rate policy, and gold prices are currently more concerned with U.S. monetary policy than with war. Therefore, it is expected that gold prices will continue to fluctuate between $3,995 and $4,120 per ounce before the non-farm data is released this week. - Important data this week \* Friday (7th) 20:30: U.S. July non-farm payrolls, forecasted to increase by 88,000 month-on-month, with the previous value being an increase of 57,000 month-on-month. 20:30: U.S. July unemployment rate, forecasted to remain the same as the previous value at 4.2%. - This article was written on August 3, 2026, at 11:00 AM Mao Weilian, Head of Futures Business and Market Analysis Department - The signed and/or unsigned articles published by Economic Information are the personal opinions of the authors and do not represent the position of Economic Information. Economic Information serves as a platform for free speech ### Related Stocks - [IAU.US](https://longbridge.com/en/quote/IAU.US.md) - [GLL.US](https://longbridge.com/en/quote/GLL.US.md) - [UGL.US](https://longbridge.com/en/quote/UGL.US.md) - [GOLD.AU](https://longbridge.com/en/quote/GOLD.AU.md) - [GLDW.US](https://longbridge.com/en/quote/GLDW.US.md) - [SGOL.US](https://longbridge.com/en/quote/SGOL.US.md) - [518850.CN](https://longbridge.com/en/quote/518850.CN.md) ## Related News & Research - [PRECIOUS-Gold ticks higher as markets brace for Fed decision](https://longbridge.com/en/news/294182322.md) - [Gold demand steady in second quarter as central bank buying offsets ETF outflows](https://longbridge.com/en/news/294390371.md) - [PRECIOUS-Gold slips but on track to end four-month losing streak](https://longbridge.com/en/news/294447838.md) - [PRECIOUS-Gold slips as firm dollar weighs; focus turns to Fed meeting](https://longbridge.com/en/news/293991593.md) - [PRECIOUS-Gold edges higher as markets weigh Warsh's inflation message after Fed decision](https://longbridge.com/en/news/294283554.md)