💹Yen Weakness Persists Across G10 Despite Intervention: Cable FX Macro

• The chart below shows intramonth trading in G10FX/JPY. For those unfamiliar to JPY x-es, an upward trend (line rising) means the yen is depreciating vs X currency

• An orange box highlights the most recent episode of FX intervention, it is clear that the immediate reaction was strength in the yen across G10 rates. Given the structure of currency intervention, it is not surprising that the dollar was the most affected

• BoJ accounts pointed to about 3.5 trillion yen of FX intervention in early May, a more recent figure showed Japanese authorities spending a record 9.8 trillion JPY on currency operation in the past month

• Despite these efforts, G10 currencies have risen above the most recent levels of FX intervention. The gains are led by scandies and the kiwi, NOK/JPY is up 5.4% in May