Analyst: The sudden surge in the yen may just be a "test" and "warning" by Japanese authorities

PANews, January 23 – According to Justin Low, an analyst at financial website Investinglive, the Japanese yen previously experienced a significant surge. This price movement shares similar characteristics with the Ministry of Finance of Japan's "exchange rate test," akin to what we observed in 2024 and 2022. The last "exchange rate test" occurred in mid-July 2024, just before Japanese authorities intervened to buy yen; the previous one was on September 14, 2022, about a week before actual intervention took place. The purpose of the "exchange rate test" is to give the market some advance warning before any real intervention is implemented. Therefore, we already have a general expectation for the yen's trend—the only question is when the intervention will occur. The analyst stated that, in his personal view, this does not appear to be a genuine intervention, as any substantial action by Japan would have a broader and stronger impact. Thus, this is merely an "exchange rate test," and in the next few hours, we should expect some official sources to provide relevant explanations.