Technical Analysis

Goldman Sachs on Bank of Japan FX intervention in the yen

A snippet from Goldman Sachs on how intervention is conducted in the yen. I’m posting it in case you are interested given the Bank of Japan intervened in the currency in 2022.

In September, for example, the BOJ bought around 2.8tln yen, and beefed that up in October to around 6.4tln yen. USD/JPY peaked this year in October and took another leg lower on the BOJ monetary policy tweak in December.

Via Goldman Sachs:

  • FX intervention is carried out under the authority of the Ministry of Finance (MOF).
  • The BoJ conducts FX interventions on behalf of and at the instruction of the MOF. The Foreign Exchange Fund Special Account (FEFSA), which falls under the jurisdiction of the MOF, is used for interventions. The MOF gives the BoJ specific instructions for FX intervention based on relevant market information provided by the BoJ.

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