--- title: "ATFX: US and Japan intervene jointly, yen appreciation crashes the dollar index" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/43152257.md" description: "ATFX Market Commentary: Japan's Finance Minister Shizuka Kiyama stated that the Ministry of Finance coordinated with the United States to purchase Japanese yen. It is reported that on July 30, USDJPY plummeted, dropping from a high of 163.72 to a low of 157.95, breaking through the 158 level and reaching a new low since May 15. Kiyama also stated that if necessary, we will not hesitate to implement further joint intervention. This implies that joint intervention by the US and Japan in the yen exchange rate may not be a one-time action; if USDJPY rebounds again, a second intervention is highly likely to be triggered..." datetime: "2026-08-03T09:47:40.000Z" locales: - [en](https://longbridge.com/en/topics/43152257.md) - [zh-CN](https://longbridge.com/zh-CN/topics/43152257.md) - [zh-HK](https://longbridge.com/zh-HK/topics/43152257.md) author: "[交易员说](https://longbridge.com/en/profiles/25527811.md)" generator: "portal-rs" --- # ATFX: US and Japan intervene jointly, yen appreciation crashes the dollar index ATFX Market Commentary: Japan's Finance Minister Satsuki Katayama stated that the Ministry of Finance, in coordination with the United States, jointly purchased Japanese yen. It is reported that on July 30, USDJPY plummeted, falling from a high of 163.72 to a low of 157.95, breaking through the 158 level and reaching a new low since May 15. Katayama also stated that if necessary, we will not hesitate to implement further joint intervention. This implies that joint intervention by the US and Japan in the yen exchange rate may not be a one-time action; if USDJPY rebounds again, a second round of intervention is highly likely to be triggered. Figure 1: Overlay of USDJPY and 10-year US Treasury yield over the past week - ATFX On July 30, the movement of USDJPY resonated highly with the 10-year US Treasury yield curve. USDJPY dropped rapidly from a high of 163.73 to 158.86, while the corresponding US Treasury yield fell from 4.712% to 4.659%. This market movement may be a sign that the Japanese Ministry of Finance or the Bank of Japan sold US Treasuries and dollars to buy yen. According to analysis by third-party institutions, this operation may have utilized funds amounting to 8.45 trillion yen (approximately $52.8 billion). For comparison, between April 28 and May 27, Japan cumulatively invested approximately 11.73 trillion yen (about $73.2 billion) in forex market intervention. The single-day intervention amount on July 30 almost reached the total scale of the previous month, demonstrating the Japanese authorities' determination to prevent yen depreciation. On July 31 and August 3 (today), USDJPY continued its downward trend, hitting a low of 155.21 during the Asian session today, marking a new low since May 7. However, as shown in Figure 1, the 10-year US Treasury yield had already rebounded sharply before the US market opened on July 31 (around 17:00), subsequently reaching pre-intervention highs. Around 3:00 AM last Saturday, the 10-year US Treasury yield began a second decline, which has not stopped as of now. Figure 2: German 10-year government bond yield - ATFX Rumors suggest that the New York Federal Reserve requested at least two major US banks to inquire about the EUR/JPY exchange rate last Friday. Market participants speculate that the US Treasury's method of intervening in the yen exchange rate is likely selling euros to buy yen. As seen in the chart above, the German 10-year government bond yield has recently declined abnormally, possibly indicating one of the signs of the US selling German bonds and euros. Although both German and US 10-year bond yields have decreased, the impact of the decrease in US bond yields on the market trend is more prominent, so EURUSD showed a clear upward momentum last week. We observed that gold did not experience abnormal fluctuations last week, with market prices oscillating around the $4,000 per ounce level. The sharp drop in the US Dollar Index contrasts sharply with gold's moderate volatility, meaning that capital in the gold market does not believe that the plunge in the US Dollar Index caused by joint US-Japanese intervention in the yen can drive up gold prices. We believe that the short-term passive decline in the US Dollar Index indeed cannot form a substantial bullish case for gold. However, if joint intervention by the US and Japan persists in the long term, especially if the US Dollar Index breaks key support levels, the characteristic pattern of moderate oscillation in gold is likely to be broken. **ATFX Risk Warning, Disclaimer, Special Statement:** Markets involve risks; investment requires caution. The above content represents only the personal views of the analyst and does not constitute any operational advice. Please do not regard this report as the sole reference basis. Analysts' views may change over different periods, and updates will not be notified separately. ### Related Stocks - [07299.HK](https://longbridge.com/en/quote/07299.HK.md) - [GLD.US](https://longbridge.com/en/quote/GLD.US.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**