Did the Bank of Japan just do something?

Ooof.

Check out USDJPY.

That's a serious rocket up the arse of dollar yen there.

Why though?

Well, the yen has been appreciating massively over the last year or so.

Back in March, there was talk of intervention as USDJPY fell down into that 104.50 handle...

And then it absolutely 💩'd through to the downside.

But it's pretty bloody clear where we could argue the BoJ have been intervening at if we wanted to...

I mean, the market has rocketed off of the zone between 104.00/75 multiple times before.

I did indeed put my balls on the line because of that.

Why would they intervene though?

Well, Japan has had pretty poor inflation for a while now and recent numbers have not been great.

Just like the euro, a stronger yen undermines their ability to boost inflation, which is why a few weeks ago I mentioned that there is likely going to be a currency war over the next few months...

I reckon it's really time for the dollar to make its comeback, and BBG have already started with the retrospective takes...