USD/JPY tested and exceeded the 160 mark in late July 2026, pushing the yen to its weakest levels against the dollar in roughly 40 years. Japan and the United States responded with a coordinated intervention, the first of its kind since 2011, and currency strategists are now warning that the rules of the game have quietly changed for speculators.
What actually happened
Japan’s Ministry of Finance executed a single tranche of yen purchases estimated at around $53 billion on July 31 into August 1.
The US Treasury did not sit this one out. In a move that caught many traders off guard, Washington participated directly in yen purchases, including selling euros to fund the operation. The Treasury also issued warnings to major banks, telling them to prepare for active involvement in currency markets.
Japan has not been shy about burning reserves to defend the yen in recent years. Since 2022, Tokyo has spent approximately $150 billion in cumulative yen-support operations, including a $35 billion single intervention in 2024. The July 2026 tranche of $53 billion surpassed even that.
