After the gains driven by the intervention gradually subsided, the yen exchange rate fluctuated repeatedly between ups and downs, triggering market speculation that the Japanese authorities might once again intervene in the foreign exchange market to prevent the yen from weakening again. As of 10:05 a.m. New York time, the yen rose about 0.2% against the US dollar during volatile trading to 159.24 yen per dollar. Japan may use about 53 billion US dollars to intervene in the foreign exchange market on Thursday, driving the yen to surge by 3.3%; however, after the Bank of Japan kept interest rates unchanged on Friday, the yen regained some of its gains. Yusuke Miyairi, foreign exchange strategist at Nomura International, said, “At the end of the day, unless fundamentals change, the impact of foreign exchange market intervention on the exchange rate may only be temporary.” Nomura strategist Miyairi advised investors to buy EURJPY on Friday. EUR/JPY is expected to rise by about 4%, and pointed out that if economic fundamentals do not change, the impact of foreign exchange intervention will gradually subside. Neil Jones, managing director of foreign exchange sales and trading at TJM FX, said, “The current market trend provides an opportunity for investors to buy USD/JPY through capital flows and position closures triggered by foreign exchange market intervention.”

After the gains driven by the intervention gradually subsided, the yen exchange rate fluctuated repeatedly between ups and downs, triggering market speculation that the Japanese authorities might once again intervene in the foreign exchange market to prevent the yen from weakening again. As of 10:05 a.m. New York time, the yen rose about 0.2% against the US dollar during volatile trading to 159.24 yen per dollar. Japan may use about 53 billion US dollars to intervene in the foreign exchange market on Thursday, driving the yen to surge by 3.3%; however, after the Bank of Japan kept interest rates unchanged on Friday, the yen regained some of its gains. Yusuke Miyairi, foreign exchange strategist at Nomura International, said, “At the end of the day, unless fundamentals change, the impact of foreign exchange market intervention on the exchange rate may only be temporary.” Nomura strategist Miyairi advised investors to buy EURJPY on Friday. EUR/JPY is expected to rise by about 4%, and pointed out that if economic fundamentals do not change, the impact of foreign exchange intervention will gradually subside. Neil Jones, managing director of foreign exchange sales and trading at TJM FX, said, “The current market trend provides an opportunity for investors to buy USD/JPY through capital flows and position closures triggered by foreign exchange market intervention.”