USDJPY - 04.08.2026USD/JPYOANDA:USDJPYSinnSeedWhat I had been waiting for has happened. Shorts on the pair have been closed. USD/JPY (dollar/yen): key news for August 3–4, 2026. The pair fell sharply after a joint intervention by Japan and the United States — the first in many years (by different estimates, since either 2011 or 1998). The exchange rate dropped from multi-year highs around 163–164 (the weakest yen levels since 1986) to roughly the 155.5 area. Key events Interventions: Japanese authorities (the Ministry of Finance and the Bank of Japan) were actively buying yen (estimated scale: around 6–8.45 trillion yen / about $53–59 billion on one of the days). The U.S. also joined in: the Treasury, through the New York Fed, was selling euros and buying yen (via Goldman Sachs and Morgan Stanley). U.S. Treasury Secretary Scott Bessent had previously called the yen “significantly undervalued” and considered purchases in the range of $5–10 billion. Official statements: Head of Japan’s Ministry of Finance Satsuki Katayama announced the joint actions with Washington. The parties emphasized their readiness to take further measures against “excessive volatility.” President Trump also confirmed support for Japan. Context: The main driver of yen weakness is the large interest-rate differential (the Fed vs. the Bank of Japan). The Bank of Japan kept the rate unchanged at 1%, but signaled a possible further hike. Earlier interventions (in April–May) had produced only a temporary effect. Further movement will depend on the sustainability of the interventions, U.S. labor market data (payrolls), Fed/Bank of Japan policy, and how much the market believes in the coordination between Tokyo and Washington. Historically, such measures often have a short-term effect, after which fundamental factors (rates) take control again. And fundamentally, the rate was left unchanged. The next Bank of Japan (BOJ) rate announcement is on September 18, 2026. Governor Kazuo Ueda’s press conference: September 18 at 15:30. Until then, we’re betting on the carry trade and buying up to at least 159.75, and then we’ll assess the situation based on developments and the news.