US-Japan Yen Intervention: More Than a Currency Story

In this paper, we discuss:

• Why the US and Japan jointly intervened to support the yen;
• How yen weakness is linked to US Treasury markets and global capital flows;
• Why Japan’s high public debt constrains faster BoJ tightening;
• How the yen carry trade creates broader financial-stability risks;
• Why intervention alone cannot overcome the US-Japan interest-rate gap. 

Download PDF: Japanese Yen Intervention – August 2026