The Japanese yen finds new demand after the country’s Ministry of Finance (MOF) reported that the Ministry, the Bank of Japan (BoJ) and the Financial Services Agency (FSA) will meet on Thursday at 07:45 GMT.
Japan’s top foreign exchange diplomat said he will brief the media after the meeting.
The expectations of an intervention in the foreign exchange market soared and put a strong demand on the yen, as investors anticipate that the Japanese official could intervene after USD/JPY rallied almost 500 pips so far this week to hit the 145.00 level, the highest since 1998.
USD/JPY came under heavy selling pressure and quickly lost 60 pips to drop to 143.55 on this news, before regaining ground to 143.75 where it now stabilizes. The pair is now trading virtually unchanged on the day.
USD/JPY 15 minute chart
Source: Fx Street