Health intervention or yen time to rest

Health intervention or yen time to rest For the first time since 1998, the Japanese government entered the foreign exchange market to sell dollars for yen and support the exhausted national currency. This is not a joint intervention with the dollar, so its effect of it will be short-lived. But such an operation was coordinated with the Fed.In recent weeks, the Japanese authorities have repeatedly given verbal signals about the impending covert intervention to correct the course. Currency intervention is an extraordinary move for a country that has long been criticized by its trading partners for tolerating or even encouraging a weak currency on behalf of its exporters.The last time Japan strengthened the yen in this way was during the Asian financial crisis in 1998 when the exchange rate hit around 146 and threatened a fragile economy. Also, an unofficial intervention was carried out at the level of 130 to weaken the currency in the critical year 2011.Such actions will slow down the pace of the weakening of the yen, but the stable trend can be changed only by tightening the monetary policy. The growth rate of consumer prices in Japan in August accelerated to the highest since September 2016 3%.But the BOJ kept its ultra-low interest rates at -0.1% and its 10-year government bond yield target near zero. Annual ETF buybacks are also maintained at 12 trillion ($104 billion). The government bond buyback program was left unlimited. BOJ said it would continue to buy back 10-year government bonds daily at a fixed rate to avoid pushing yields above the 0.25% threshold.Japanese households are increasingly nervous about the negative impact of the weakening yen, as the cost of raw materials and energy is rising. This situation puts pressure on the consensus between the BOJ, which decided to spur inflation, and the government, which is trying to avoid a consumer crisis.So we are waiting for the correction and getting ready to buy.Profits to yall!