“Japan is about to pass Obon, market participation may be limited, and the schedule of domestic events is relatively light,” Nomura Securities strategist Yujiro Goto wrote in a research report. “The focus will still be on the Japanese and US authorities' intervention positions, and investors will pay close attention to the statements made by officials.” This reversal highlights the limitations of intervention measures in changing the overall trend while the driving factors behind the depreciation of the yen remain largely unchanged. Despite warnings from both Tokyo and Washington that they are ready to act again if necessary, huge interest spreads with the US, concerns about Japan's fiscal outlook, and geopolitical uncertainty are still putting pressure on the yen. “We believe that the market's relatively lackluster response to this intervention reflects the root cause of currency weakness,” Goldman Sachs Group's Kamakshya Trivedi and other strategists predicted in a report. “Unless the global situation changes or unexpected policies occur, depreciation pressure will resurface over time.”

“Japan is about to pass Obon, market participation may be limited, and the schedule of domestic events is relatively light,” Nomura Securities strategist Yujiro Goto wrote in a research report. “The focus will still be on the intervention positions of the Japanese and US authorities, and investors will pay close attention to the statements made by officials.” This reversal highlights the limitations of intervention measures in changing the overall trend while the driving factors behind the depreciation of the yen remain largely unchanged. Despite warnings from both Tokyo and Washington that they are ready to act again if necessary, huge interest spreads with the US, concerns about Japan's fiscal outlook, and geopolitical uncertainty are still putting pressure on the yen. “We believe that the market's relatively lackluster response to this intervention reflects the root cause of currency weakness,” Goldman Sachs Group's Kamakshya Trivedi and other strategists predicted in a report. “Unless the global situation changes or unexpected policies occur, depreciation pressure will resurface over time.”