Bank Of Japan Intervenes In Currency Markets Twice

The Japanese Central Bank likely intervened in the currency markets, strengthening the Yen against the Dollar. It appears they timed it perfectly to coincide with the release of the CPI data on Thursday, July 11th and the PPI data on July 12th.

The interention was timed to coincide with the CPI and PPI data release as to not raise eyebrows with the United States. The United States has warned Japan on intervening in the currency markets to support the Yen. Japan has been labeled a potential currency manipulator by the United States. As of now, this intervention has floated under the radar because of it was perfectly timed with major economic data.

The big question remains, will the Yen weaken again against the Dollar and start floating back up to the recent highs on the Dollar/Yen (USD/JPY)? Japan may have to make intervention a normal monthly thing to keep the Yen from continuing its major decline.