Weekly Special Report: USD/JPY

U.S. GOVERNMENT:

• BREAKING (AUGUST 19): U.S. TREASURY ANNOUNCED MORE AGGRESSIVE LONG-TERM BOND REPURCHASE PROGRAMME. The Treasury will double the size of its long-term bond repurchase operations to $4 billion from $2 billion, starting September 9. The Treasury had already planned around $69 billion of repurchases across all maturities between August and November, with the larger operations expected to add at least $14 billion, bringing the total to around $83 billion.
• POTENTIAL IMPACT ON USD/JPY: The larger repurchases could increase liquidity and money US Dollar supply in financial markets, potentially weighing on the U.S. dollar and USD/JPY prices.

JOINT INTERVENTION: BANK OF JAPAN & THE FEDERAL RESERVE

• THURSDAY (JULY 30): BANK OF JAPAN INTERVENES TO SUPPORT THE YEN. The Bank of Japan launched a massive intervention, reportedly spending an estimated $52.8 – $59.0 billion likely the largest single-day currency intervention in Japan's history. The move triggered an immediate 3% increase in the yen.
• FRIDAY (JULY 31): BANK OF JAPAN & FEDERAL RESERVE LAUNCHED RARE JOINT YEN-PURCHASING INTERVENTION. Japan and the U.S. conducted their first coordinated currency intervention since 2011, with the Federal Reserve assisting the U.S. Treasury in purchasing yen through reserve transactions.
• MONDAY (AUGUST 3): MORE YEN INTERVENTIONS POSSIBLE AS JAPAN WARNS MARKETS. Japan’s Finance Minister Satsuki Katayama warned that further action could follow if volatility returns. After confirming deploying an estimated $85–95 billion over two days, officials signaled a willingness to defend the yen.

Source: Bloomberg, Reuters, CNBC

EVENTS: UNITED STATES

• FRIDAY, AUGUST 21 AT 14:45 GMT+1: U.S. MANUFACTURING AND SERVICES PMI (AUGUST). Investors will monitor both PMIs for further signs of slowing U.S. economic activity. A weaker reading could increase expectations of a looser Federal Reserve monetary policy, weighing on the U.S. dollar and supporting support Japanese Yen.
• WEDNESDAY, AUGUST 26 AT 13:30 GMT+1: U.S. GROSS DOMESTIC PRODUCT (GDP) (Q2). A preliminary report published at the end of July showed a decrease from 2.1% to 1.5% despite no change was expected. Another disappointing report may increase concern regarding the U.S. economy and have a negative impact on the U.S. dollar and USD/JPY prices.

TECHNICAL ANALYSIS:

• RESISTANCE AREA: 160 - 162. The 160 - 162 area has become a major resistance zone following the latest Bank of Japan and U.S.–Japan joint intervention. A sustained break above 160 could trigger renewed intervention risks as Japan looks to prevent further yen weakness. The price may move either way, depending on market conditions.

GRAPH (Weekly): August 2023 – August 2026

Please note that past performance does not guarantee future results

USD/JPY, August 20, 2026
Current Price:  158.70

Example of calculation based on weekly market trend for 1.00 Lot¹

1.  The above calculations are made based on 1.00 lot which is equivalent of 100,000 units
2.  Calculations for exchange rate used as of 13:30 (GMT+1) 20/08/2026

You can use risk management tools such as Stop-Loss and Take-Profit.