Reports and data indicate that the Bank of Japan intervened in currency markets by selling approximately $35 billion in U.S. dollars and buying yen to halt its sharp decline.
The move came after USD/JPY surged near the 160 level, with the yen rebounding 3% within hours following the intervention.
However, analysts note that the interest rate gap between the U.S. and Japan remains unchanged, keeping carry trade pressures intact and potentially limiting the long-term effectiveness of such interventions.