Nearly a hundred billion dollars in intervention still can't stop the yen from soaring towards 160? The yen's exchange rate has retraced nearly half of its rebound, and the effects of the US-Japan joint intervention are gradually waning.

According to Zhiyun Finance APP, the Japanese yen continued to weaken slightly in Tuesday's foreign exchange market, approaching a very critical level for the USD/JPY pair (indicating a depreciation trajectory for the yen). This may trigger market speculation that the Japanese Ministry of Finance authorities will intervene again to support the yen. After a joint intervention by the U.S. and Japanese governments, the yen still nears 160, and the core logic undoubtedly lies in the fact that foreign exchange intervention can change short-term capital flows, but cannot alter the weak fiscal outlook, the gap in relative yields, and the monetary policy response function that determine the central exchange rate.