Yen (USD/JPY) hits 30-year low amid potential intervention
A sharp reversion following a historic extreme in USD/JPY caused immediate speculation of an intervention by the Bank of Japan. Learn what happened last time USD/JPY hit 150.00 and where it could go from here.
Key points
- USD/JPY hit 150.00 intraday Tuesday before a sharp reversion
- USD/JPY fell 250 pips in the five minutes following the breakthrough
- 150.00 was last reached in October 2022 - and remains the highest close since 1990
Did soaring prices cause the BoJ to intervene?
Tuesday morning, US dollar gained after a stronger-than-expected US job opening number. USD/JPY continued to climb until it reached 150.00. It only held onto that benchmark for five minutes before suddenly dropping, seeing prices all the way below 147.50 before settling around 149.00.
Speculation immediately arose that the Bank of Japan had finally intervened in attempt to curb prices. Traders point to last year's price extremes when the BoJ did exactly that shortly after USD/JPY hit 150.00. While there has been no official actions or statements by the BoJ, they will likely address the historic price level in the coming weeks ahead of their interest rate decision at the end of October.
How to trade USD/JPY
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on USD/JPY
Trading forex requires an account with a forex provider like IG. USD/JPY can be found in IG's platform under the 'Major' pairs tab. Many traders also watch major forex pairs like GBP/USD and AUD/USD for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like IG’s Trading Academy. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
What is the BoJ?
The BoJ, or the Bank of Japan, is Japan's central bank. It is responsible for issuing banknotes and carrying out monetary control in attempt to maintain price stability.
What is a reversal?
A reversal is a turnaround in the price movement of an asset: when an upward trend (or a rally) becomes a downward one (a correction), or vice versa. They can also often be referred to as trend reversals.
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