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USD/JPY news for August 2, 2026

The Bank of Japan left its policy rate unchanged at 1.00%, while reports indicate coordinated Japan-U.S. intervention to support the yen, including a plan by U.S. Treasury Secretary Bessent to purchase yen. This intervention pressure has weighed on the dollar-yen pair despite otherwise bullish macro factors for the dollar. With speculative FX positioning described as deeply bearish, traders are assessing whether the yen's rebound is a correction or a reversal.

How the day unfolded

  1. The Bank of Japan left its policy rate at 1.00% as expected, with no change to its view that inflation is around 2%, though it noted underlying price pressures could exceed that target. This leaves the yen’s direction hinging on Governor Ueda’s guidance for future moves, while the unchanged policy also supported yen crosses like EUR/JPY. For USD/JPY, the focus remains on the policy divergence between the BOJ and the Federal Reserve.

  2. The Bank of Japan left its policy rate at 1.00% as widely expected, while reiterating that inflation is around 2% and warning that underlying price pressures could exceed that target. At the same time, reports of intervention in the USD/JPY pair are weighing on the dollar, helping to push it lower against the yen.

  3. The Bank of Japan left rates unchanged at 1.00%, as expected, and any yen gains from that decision quickly faded with USDJPY drifting back to 160.00. Reports also indicate Japan may have spent $58.97 billion on yen-buying intervention, while CFTC data shows extreme bearish positioning in FX. These developments underscore persistent downward pressure on the yen despite official efforts.

  4. The Bank of Japan left its policy rate at 1.00% as expected, with the decision framed within broader central bank caution this week. Meanwhile, the dollar has been affected by reported intervention and yen-buying activity, including a reference to a US Treasury pick's to-do list and speculation about an unnamed second buyer. These factors are currently shaping USDJPY market conditions.

  5. The Bank of Japan left rates at 1.00% with no surprises, offering little new policy guidance. However, the yen strengthened on reports of official intervention and a possible U.S. purchase of the currency, which pressured the dollar against the yen. These developments are fueling volatility in USDJPY as traders assess the impact of potential coordinated support for the yen.

  6. The yen is being supported by reports of coordinated intervention, including a potential U.S. Treasury plan to purchase billions of yen and joint U.S.-Japan efforts to halt the currency's decline. The Bank of Japan's decision to hold rates at 1.00% offered no new policy signals, leaving official action as the primary driver for USD/JPY.

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Not investment advice. For informational purposes only.