Yen hits new low after the BoJ keeps interest rates near 0%

Intervention from the BoJ is still possible

As the USD/JPY pair continues its ascent, the likelihood of the BoJ intervening in the forex markets to curb the yen’s rapid devaluation grows. Japanese financial authorities have expressed concerns over the yen’s swift decline, hinting at potential market actions, reminiscent of their yen buybacks in 2022 to stabilize exchange rates. The question now becomes what occurrence will force the BoJ’s hand — USD/JPY at 158.00?

How far can the Japanese yen fall?

With USD/JPY nearing all-time highs of 160.00 and EUR/JPY just short of its peak, speculation about the yen’s floor intensifies. The GBP/JPY pair, however, offers the most room for movement towards its historical high of 250.00 from its current position around 196.00, indicating varying levels of pressure on the yen across different currency pairs.