The sharp drop in the USD/JPY exchange rate is suspected to be due to official covert intervention.

On Wednesday, the US dollar suddenly fell against the Japanese yen, causing traders to speculate that the Japanese authorities may be selling off the dollar. Up to now, the Japanese side is still unwilling to admit to intervening in the currency market, but since last week when the exchange rate dropped near the 160 level, foreign exchange traders have remained highly vigilant. The market is also keeping an eye on the fact that according to the guidelines of the International Monetary Fund, Japan still has two three-day intervention opportunities before November to maintain its position of freely floating exchange rates.