FXY ETF

Japan's Ministry of Finance revealed that the country has conducted its first currency intervention since October 2022, aimed at stabilizing the yen following its decline to a 34-year low in April.

The Japanese Yen has hit its lowest point since the 1980s, showing a notable trend of devaluation. The Yen's decrease in value compared to gold is more significant than its decrease compared to the dollar, suggesting possible economic and financial problems in Japan. With a public and private debt to GDP ratio of over 500%, Japan faces the risk of triggering an economic crisis if it raises interest rates.

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The Japanese Yen continues to be weak against major global currencies due to the Bank of Japan's negative interest rates policies and high inflation.

The FXY is a way to go long on the yen relative to the USD. The yen has depreciated YTD due to Fed rate hikes and Japanese ultra-dovishness. New BoJ governor, Ueda, may end up being more hawkish, but the current speculation on the yen may have prompted the signaling, and not fundamentals.

FXY: Government Officials Warn Of Intervention; Take Profits

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