The yen's sharp depreciation has reignited intervention risk as the BOJ shifts policy and JGB yields surge. Recent government, business and central bank signals — plus China's CFETS adjustment — are reshaping USD/JPY dynamics and trader expectations.

The Bank of Japan’s 25bp rate rise to 0.75% and ambiguous forward guidance have failed to steady the yen. Rising JGB yields, expanded fiscal issuance and forceful government warnings of intervention are driving USD/JPY toward the ¥156–¥157 area and increasing near-term volatility for traders.

Concrete policy moves and fiscal action this week pushed the yen higher: the Bank of Japan signaled a December rate hike to 0.75%, Japan approved an ¥18.3tn supplementary budget, and 10-year JGB yields hit multi-year highs—driving USD/JPY toward the mid-150s and reshaping short-term FX positioning.

This article explains the concrete drivers behind the yen's movement over the past week: the U.S. Fed rate cut, shifting BOJ expectations, bank warnings about sustained weakness, and recent FX data showing USD/JPY trading in the mid-155s. It outlines immediate impacts, intervention risk, and a practical outlook for traders.

Clearer hawkish messaging from BOJ Governor Kazuo Ueda pushed markets to price a higher probability of a December rate hike, lifting JGB yields and strengthening the yen. USD/JPY slipped toward the mid-155s as swap markets and bond moves priced in policy normalization, while government voices signalled alignment with the central bank.

A ¥21.3 trillion stimulus and renewed BOJ hawkish hints drove USD/JPY to multi-month highs this week. Verbal intervention threats and a potential December policy move kept the yen volatile, trading around ¥156–¥157 as investors weighed fiscal expansion against tightening monetary policy.