The Zhitong Finance App learned that after the exchange rate of the yen fell to a low level of nearly 40 years, the US and Japan joined forces to intervene in the foreign exchange market by “coordinating the purchase of yen” last Friday. This rare joint action, combined with the two countries' finance ministers unabashedly strong statement that they “will continue to be involved,” is reshaping the game pattern in the foreign exchange market. The yen has rebounded violently from decades-long lows, and huge speculative bears face the risk of large-scale cancellation, yet strategists are still deeply divided about the long-term effects of the intervention.

The Zhitong Finance App learned that after the exchange rate of the yen fell to a low level of nearly 40 years, the US and Japan joined forces to intervene in the foreign exchange market by “coordinating the purchase of yen” last Friday. This rare joint action, combined with the two countries' finance ministers unabashedly strong statement that they “will continue to be involved,” is reshaping the game pattern in the foreign exchange market. The yen has rebounded violently from decades-long lows, and huge speculative bears face the risk of large-scale cancellation, yet strategists are still deeply divided about the long-term effects of the intervention.