Japan Foreign Exchange: Mimura Confirms Close US Contact Amid Yen Crisis

Japan’s Vice Finance Minister Masato Mimura said Tokyo is in close contact with the US Treasury as the yen faces heightened volatility, signalling readiness to intervene if disorderly moves continue. Markets pared dollar-yen positions after his comments, with the pair sliding from about 152.30 to 151.80, reflecting the verbal intervention effect. Authorities monitor key triggers (psychological 152, red line 155, daily volatility >1%, and speculative positioning) and hold large reserves (~$1.2 trillion) after costly interventions in 2022 and 2024. Close US coordination reduces the chance of surprise unilateral action and makes coordinated intervention more likely if the yen hits critical levels, which should dampen speculative carry trades and regional currency spillovers.