Intervention Risk Rises as Speculative Yen Shorts Build -- Market Talk

Dow Jones03-25

0524 GMT - Some market participants say the bar for Tokyo's currency intervention is high because the recent yen weakness has been dollar-driven. However, caution is now warranted, says Mitsubishi UFJ Morgan Stanley Securities strategist Shota Ryu. Market chatter suggests that if Middle East tensions further inflate net yen shorts, authorities will likely label the move "speculative," regardless of the primary driver, he says. "Both the dollar-yen level and short-term yen-selling momentum could serve as critical factors in the decision to intervene," he says. "If the dollar breaks decisively above the 160 yen threshold, market players should be on high alert for intervention." The dollar is last at 158.92 yen. (megumi.fujikawa@wsj.com)

(END) Dow Jones Newswires

March 25, 2026 01:24 ET (05:24 GMT)

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